Option pricing and risk hedging for Visa

As the core of option transaction, price changing with supply and demand in market is a variable which affects profit loss both trading sides directly. In 20th century, multitudinous econometric pricing models proposed lacked universal recognition until Black Scholes Merton model came out. This paper focuses on stocks options from Visa Inc. to do article consisting calibration, hedging using fundamental extensive jump mainly under seldom used method. The demonstrates that calibrated parameters perform better than diffusion same method, portfolio based keeps at steady level though it should not be preference certain circumstance. results this are beneficial for investors forecast optimal describes nature selection.