A stochastic dominance approach to evaluating alternative estimators of the variance for use in the Black-Scholes option pricing model

Haim Levy*, James A. Yoder

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

A stochastic dominance approach to evaluating alternative estimators of the variance for use in the Black-Scholes formula is presented. A range of estimators typically make up the efficient set. The unbiased and maximum-likelihood estimators are often, but not necessarily, in the efficient set.

Original languageEnglish
Pages (from-to)377-382
Number of pages6
JournalApplied Financial Economics
Volume6
Issue number4
DOIs
StatePublished - Aug 1996

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