Valuing stock options when prices are su
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Dirk Veestraeten
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Article
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2008
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John Wiley and Sons
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English
β 381 KB
## Abstract This study examines the implications for stock option pricing when the domain of the stock price is constrained by a lower boundary. The valuation strategy starts from the familiar geometric Brownian motion framework of Black & Scholes (1973). However, an instantaneously reflecting lowe