Please could someone give me a formula (or a reference to it) for valuing
European call options. Alternative pricing models which assume different
stochastic models for the share price movement would also be of interest.
As you will gather I am a complete newcomer to this area and am doing this
for a non-statistician colleague. I don't have a lot of time to research
the subject and would prefer something which I can program into a
spreadsheet. I'm told that American options can be exercised at any time
up to maturity whereas European options can only be exercised at the
maturity date and therefore the classic Black-Scholes formula cannot be
applied to European options, is this right?
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