This pays out one device of asset If your location is below the strike at maturity. Its price now's offered by
In these, S is the Preliminary stock price tag, K denotes the strike cost, T is the time to maturity, q would be the dividend price, r is the danger-cost-free fascination charge and σ displaystyle sigma
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C = C n o s k e w − V e g a v ∗ S k e w displaystyle C=C_ mathrm noskew -mathrm Vega _ v *mathrm Skew
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