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** Contents**
** Index**

The pricing of options
and related instruments has been a major breakthrough for the use of financial
theory in practical application. Since the original papers of
Black and Scholes (1973) and Merton (1973), there has been a wealth
of practical and theoretical applications. In this chapter we will discuss
ways of calculating the price of an option in the setting discussed in these
original papers. The discussion is not complete, it needs to be supplemented by
one of the standard textbooks, like Hull (1993).

**Subsections**

** Next:** Setup.
** Up:** Financial Numerical Recipes.
** Previous:** Internal rate of return.
** Contents**
** Index**
*Bernt Arne Odegaard*

*1999-09-09*