Application of Option Pricing Model in Business Evaluation for High-tech Enterprise

摘要

This paper illuminates intrinsic value and behavior of premium option based on expounding exactly the definition of option. To modify the model fit for long-term option and short-term option with variables as Expiration date and dividend-paying policy by numbers of empirical studies, this paper explains calculating way of dividend yield and volatility, then uses that into cases analysis and introduces valuation steps, which make option pricing method more applied, simplified and procedure.