Abstract
Abstract: This study examined empirically the predictive ability of Black-Scholes Option pricing model in Nigerian Stock Market by testing whether there is any significant difference between the market (underlying) price of the stock and the theoretical prices. The data used for this study was Coca-Cola Stock prices from 2018 to 2022 obtained from http://www.investing.com and were analyzed using Statistical packages such as Microsoft Excel and Minitab to obtain the result. The results showed that there is a significant difference between the underlying and the theoretical price (Black-Scholes Option Pricing Model). Based on the findings of this study, we conclude that the Black- Scholes model is not accurate in its price predictive ability on the Coca-Cola Stock prices over the years under study.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
