AMERICAN OPTION ON THE INFORMATION-BASED PRICING MODEL

This article describes a new idea of American option pricing and its properties, based on an information-based model called the BS-BHM-Updated model, which helps obtain analytic solution call put price. Using authors. The first research result is condition that can be applied if value log current timeshare divided by previous time negative. Second, under has same as Black Scholes, whereas it follows Xiaodong theorem. Third, this found five Greeks in Scholes’s Greek partial derivative to parameter cash flow information. developing BS-BHM market variable information, namely expected value. More been conducted calls European options model. results investigation were structurally similar Scholes. paper studies for determining price attempts find solution. also mathematical formulas information figures. presents contribution alternative pricing. Investors use profit decision-making. Keywords: BS BHM-Updated Model, Option, DOI： https://doi.org/10.35741/issn.0258-2724.58.4.69