The Valuation of Google Snowball Option
These authors contributed equally.
- DOI
- 10.2991/aebmr.k.220307.052How to use a DOI?
- Keywords
- Option pricing; Finance; Google; knock-out
- Abstract
With the COIV-19 crisis, the risk in the stock market is more complex. It is crucial to managing the risk. Option as an important financial instrument to hedge risk would be considered commonly for investors. This article considers the option pricing model to establish a snowball option based on Google’s stock price. The paper capture the option’s price based on different scenarios. Moreover, the sensitivity analysis reveals that the higher the volatility, the higher the probability of knocking out early. The likelihood of “knocking in without knocking out” will increase and lead to a lower return. Also, the higher the knock-in price is, the easier the stock price will reach the knock-in price, and the probability of the option to be knocked in will be higher.
- Copyright
- © 2022 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Yingshuo Li AU - Wei Wang PY - 2022 DA - 2022/03/26 TI - The Valuation of Google Snowball Option BT - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022) PB - Atlantis Press SP - 329 EP - 333 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.220307.052 DO - 10.2991/aebmr.k.220307.052 ID - Li2022 ER -