Prophecy of share market price by using black scholes model

摘要

Stock market is an important part of the wealth of a nation. The victorious prophecy of a share's upcoming levy could bestow remarkable dividend. The acceptance of replica was not found to be adequate; consequently, to vanquish the complication of precursory algorithms, Black Scholes algorithm is cast off to inculcate the share price more meticulously algorithm presuppose that the fair consists of a minimum of devious asset, usually called the resource, and one devious less resource, usually called the money market. Black Scholes regards a call option as a progressive covenant to drop-ship stock at a deliberate price. The ascendant lead of this explorated algorithm comprises no arbitrage bounds and risk-neutral pricing. Based on experimental data, it appears to have higher average mastery and better generalization competence than comparative algorithms.