Testing option pricing models for several contingent claims using a generalized methodology

Chris Veld, Adri Verboven

Research output: Contribution to journalArticleResearchpeer-review

2 Citations (Scopus)


A general methodology is presented to test option pricing models for several contingent claims. This methodology is used to test the Black/Scholes model and the Binomial model for call and put options simultaneously. Results show that these two models are inadequate for the pricing of both call and put options.

Original languageEnglish
Pages (from-to)293-299
Number of pages7
JournalEconomics Letters
Issue number3
Publication statusPublished - 1 Jan 1993
Externally publishedYes

Cite this