The Pricing of Options and Corporate Liabilities Export

@article{citeulike:202505, abstract = {If options are correctly priced in the market, it should not be possible to make sure profits by creating portfolios of long and short positions in options and their underlying stocks. Using this principle, a theoretical valuation formula for options is derived. Since almost all corporate liabilities can be viewed as combinations of options, the formula and the analysis that led to it are also applicable to corporate liabilities such as common stock, corporate bonds, and warrants. In particular, the formula can be used to derive the discount that should be applied to a corporate bond because of the possibility of default.}, author = {Black, Fischer and Scholes, Myron}, citeulike-article-id = {202505}, citeulike-linkout-0 = {http://dx.doi.org/10.2307/1831029}, citeulike-linkout-1 = {http://www.jstor.org/stable/1831029}, doi = {10.2307/1831029}, issn = {00223808}, journal = {The Journal of Political Economy}, keywords = {1973, finance}, number = {3}, pages = {637--654}, posted-at = {2008-05-15 08:19:47}, priority = {2}, publisher = {The University of Chicago Press}, title = {The Pricing of Options and Corporate Liabilities}, url = {http://dx.doi.org/10.2307/1831029}, volume = {81}, year = {1973} }

TY - JOUR ID - citeulike:202505 L3 - citeulike-article-id:202505 N2 - If options are correctly priced in the market, it should not be possible to make sure profits by creating portfolios of long and short positions in options and their underlying stocks. Using this principle, a theoretical valuation formula for options is derived. Since almost all corporate liabilities can be viewed as combinations of options, the formula and the analysis that led to it are also applicable to corporate liabilities such as common stock, corporate bonds, and warrants. In particular, the formula can be used to derive the discount that should be applied to a corporate bond because of the possibility of default. IS - 3 JF - The Journal of Political Economy SN - 00223808 EP - 654 TI - The Pricing of Options and Corporate Liabilities PB - The University of Chicago Press VL - 81 SP - 637 KW - 1973 KW - finance AU - Black, Fischer AU - Scholes, Myron PY - 1973/// UR - http://dx.doi.org/10.2307/1831029 ER -