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- Publisher
- Wiley
- Copyright
- 1982 The American Finance Association
- ISSN
- 0022-1082
- eISSN
- 1540-6261
- DOI
- 10.1111/j.1540-6261.1982.tb03597.x
- Publisher site
- See Article on Publisher Site
Abstract
ABSTRACT The Black‐Scholes option pricing model, modified for dividend payments, is used to calculate jointly implied stock prices and implied standard deviations. A comparison of the implied stock prices with observed stock prices reveals that the implied prices contain information regarding equilibrium stock prices that is not fully reflected in observed stock prices. The implications of this finding are discussed.
Journal
The Journal of Finance – Wiley
Published: Sep 1, 1982