This mathematical approach to investing led to the famed Capital Asset Pricing Model by Sharpe, Lintner, and Black, the Option Pricing Model by Black and Scholes, and other important theories.

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There is reasonable concern that current methods of option pricing, both the Black-Scholes and binomial models, are not appropriate for determining the cost of the nontransferable, long-term options that companies issue to employees.

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Pricing on this option depends where the charging dock is installed and how much work is required prior to installation, Mitsubishi explains.

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Potentially through a carbon tax, it could create greater certainty in fuel pricing to make natural gas and renewables a better option than coal for power generation.

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Sentiment is determined by a number of methods, such as option pricing, analysis of the tick trading data, surveys of investors, musings in the social media and comments by the analysts.

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In response to strong demand from Cubby beta users, LogMeIn is giving users the option to purchase additional cloud storage space and lock into a year of Cubby Pro at special beta pricing.

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The idea that significant arbitrage opportunities are unlikely to exist (and certainly do not persist) is precisely the mechanism behind the Black-Scholes option-pricing model that Mr. Derman admires as a financial model behaving pretty well.

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