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Actual Values of a Financial Derivative Stock - Statistics Assignment Help

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Question Task Id: 405896
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Assignment Task
    


Project – difficulty level - EASY
For this project, I aim to compare the actual values of a financial derivative/stock to theBlack Scholes predicted values over the years 2005-2010. The aim of this is to see the effects of the 2008 financial crisis and investigate how the Black Scholes modeloverpredicted the prices during this time. Any financial derivative/stock can be used but it needs to be call options as this is what the Black Scholes model requires. As you can see, this graph only has 11 data points, however the more points the better as this will have better reliability. For example, 5/10 points over each year is fine. I would like 2 graphs to be made per derivative/stock, with the second graph having more data points (double the points would be sufficient). I would like the same analysis of 3-5 different financial derivative/stocks. It is most important that the trend shows how the Black Scholes model overpredicts the prices around 2008 compared to the actual low prices due to the 2008 financial crash. 


Overall this short project requires:

  •  A table of all inputs into Black Scholes model above [16]
  •  2 graphs per financial derivative/stock (one will less data points and one with more data points)
  •  A short explanation of how this was all done (mainly talking about where you got the input values and what the graphs show)

 

 

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  • Uploaded By : Katthy Wills
  • Posted on : March 03rd, 2020
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