Applying the Black & Scholes Option Pricing Model to Commercial Real Estate Option Pricing
In the financial markets, option theoretical values are most often calculated using the Black-Scholes model. Developed in 1973 by economists Myron Scholes and Robert C. Merton, this model was introduced to the world in their seminal academic paper, The Pricing of Options and Corporate Liabilities. In my time at Morgan Stanley, where I held the […]