Financial Management, 12th Edition by Pearson

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^1. There are a number of books and articles on the subject of option pricing. The two articles that have influenced most writings on the subject are: Black F. and M. Scholes, The Pricing of Options and Corporate Liabilities, Journal of Political Economy, 81, pp.637–654 (May-June 1973); and R.C. Merton, Theory of Rational Option Pricing, Bell Journal of Economics and Management Science, 4, pp.141–181 (Spring 1973). We also suggest the following three books for further reading: (i) Cox J., and M. Rubinstein, Option Markets, Prentice-Hall, 1985; (ii) Hull J., Options, Futures and other Derivatives, Prentice-Hall, 1993; and (iii) Jarrow R., Option Pricing, Dow. Jones-Irwin, 1983.

^2. Hull, op. cit., 1993.

^3. Hull, op. cit., 1993, Jarrow, ...