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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (40369)12/22/1998 1:23:00 AM
From: Shane M  Read Replies (3) of 132070
 
Thanks for your response on your valuation model.

I got the Options as a Strategic Investment book recommended and am reading through chapter 28 on mathematical applications now. It starts out with the Black-Scholes model and discusses valuation in general. This was exactly what I was looking for as some of the other books I got didn't address this at all.

I've put together a spreadsheet to do the Black-Scholes calculations. Is anyone aware of a site where I can compare the inputs/outputs of my spreadsheet to make sure I've got my calcs right? I can do adjustments to this later. The book mentions that empirical distributions have been calculated to take the place of the "cumulative normal distribution" of stock prices used in Black-Scholes. Is there an equation of distribution you prefer? Or is this all a waste of time? <g>

Can Black-Scholes be modified to calculate Puts also?

Thanks. Just starting looking through this, and apologize if these questions are elementary.

Shane
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