Research Article
An Option Pricing Model
https://doi.org/10.21203/rs.3.rs-2071525/v1
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A non-stochastic hyperbolic function that leads to an option pricing model for the stock markets is introduced. It's relationship with normal distribution and a generalized normal distribution has been shown, thus corroborating the use of stochastic option pricing models, but eliminating their use in a straightforward manner.
JEL Code: G13.
Options
Pricing
Model
Normal Distribution
Generalized Normal Distribution
Gaussian
Smile
Smirk
Portfolio.
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