A Comparison of Option Pricing Models:Evidence from European Call Options on Hong Kong Hang Seng Index
Options play a significant role in the financial market. The pricing of the options is a prevailing topic in academia. The Black and Scholes (Black & Scholes, 1973) model, on the one hand, was applauded by its simplicity and ease of use, on the other hand, it was criticized by the practitioner and academics because of the over-idealized constant volatility and underlying distribution assumptio
