A post Keynesian analysis of the Black-Scholes option pricing model.

The writers present a Post Keynesian analysis of the Black-Scholes option pricing model (BSOPM). They outline the basic theory of option pricing and reproduce the BSOPM formulation. In addition, they subject the BSOPM to empirical simulation, drawing on relationships that have been proven to have...

Descripción completa

Detalles Bibliográficos
Publicado en:Journal of Post Keynesian Economics Vol. 22; no. 2; pp. 247 - 264
Autores principales: Thompson, James R., Williams, Edward E.
Formato: Artículo
Publicado: M.E. Sharpe Inc. Winter 1999/2000
Materias:
Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:The writers present a Post Keynesian analysis of the Black-Scholes option pricing model (BSOPM). They outline the basic theory of option pricing and reproduce the BSOPM formulation. In addition, they subject the BSOPM to empirical simulation, drawing on relationships that have been proven to have historical validity. Furthermore, they present some conclusions concerning the lack of application of the BSOPM model, despite its almost universal acceptance by neoclassical economists and very supposedly knowledgeable practitioners.