| dc.description.abstract | This Thesis aims to re-derive formula to pricing the American Perpetual put option under
the Black-Scholes framework. We rst derive the formula using the ordinary di erential equation
approach. After archived the close form,we show in detail how to apply the formula to price
an America perpetual put option written on a Vietnamese stock, more speci cally we used
close price of Vietnam Dairy Products joint Stock Company (Vinamilk-VNM).Finally, to check
the validity of the formula, we use binomial method to re-evaluate the price of an American
perpetual put Option written on VNM stock to check the error between two results. All the
calculations and graphs sketching have been done under Rstudio environment. This study can
give an advantage knowledge for Vietnamese investors on trading option which is being traded
in Vietnamese stock market. | en_US |
