I am pretty new to option pricing. I got a task asking me to price a stock option, which should be an European non-dividend option, and compare my price to its quote. I used to use TSLA data downloaded from Yahoo Finance, but later I found stock options are usually American style? Index options, such as S&P 500, are usually European but it seems they calculate dividend payments? I spent much time to search for one option to qualify European non dividend. Could anyone save me by give a hint. Thanks!

  • $\begingroup$ None of netflix, alphabet, and facebook from what i recall. If you then only use the calls you should be okay on the american/european front. $\endgroup$ – will Dec 20 '19 at 9:37
  • $\begingroup$ @will Thank you so much. Just found that for non-dividend paying stock, the value of American call option is the same as the European. $\endgroup$ – Y. Zhou Dec 20 '19 at 9:42
  • $\begingroup$ @Y.Zhou Indeed, just look for stocks which do not pay dividends until the expiry of the option. (To be sure you could look at which have never paid dividends thus far. But that may further restrict your possible sample). Then, the quoted American call options equals an European call option. You get the price of the corresponding European put option synthetically via the (model-free) put-call-parity. $\endgroup$ – KeSchn Dec 20 '19 at 10:36

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