Option pricing and risk hedging for Apple

The Black Sholes Merton (BSM) model is one of the fundamental stochastics models in quantitative finance and Jump diffusion (MJ) model. This paper examines how BSM, MJ behave on European pricing based 10 options chosen for Apple Inc, with BSM using RRS, SSE, Historical Volatility, SSE as calibration methods. Then delta-neutral hedging strategy performed historical data collected from concessive days. RRS when should be preferred, results are similar. however, do not work well pricing. ideal this case, since it lower profits. result possesses valuable insights that methods can significantly influence accuracy pricing, method limit maximum profit.