Barone Adesi & Whaley Model
Definition
Formula for estimating the value of American options (exercisable at any time up to expiration date), primarily for equities. It computes and adds the value of the early exercise option to the value estimated by Black Scholes option pricing model. Also called Quadratic Approximation method.
Barone Adesi & Whaley Model is in the Commodities & Precious Metals Trading, Investing and Securities & Futures Trading subjects.
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