Black-Scholes-Merton Equations (Hull 2016, 304)

Brian Lee
Aug 12, 2025
Part of: Fundamentals of Futures And Options Markets By John C. Hull

Because the American call price, \(C\), equals the European call price, \(c\), for a non-dividend-paying stock, equation (13.5) also gives the price of an American call.

(13.5) is the call price question from Black-Scholes-Merton (BSM).

Black-Scholes-Merton is the same as Black-Scholes.