Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

The Valuation of Google Snowball Option

Authors
Yingshuo Li1, *, , Wei Wang2,
1Graziadio Business School, Pepperdine University, 24255, Calabasas, USA
2School of Management and Economics,The Chinese University of Hong Kong (Shenzhen), 518172, Shenzhen, China

These authors contributed equally.

*Corresponding author. Email: guanghua.ren@gecacademy.cn
Corresponding Author
Yingshuo Li
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.052How to use a DOI?
Keywords
Option pricing; Finance; Google; knock-out
Abstract

With the COIV-19 crisis, the risk in the stock market is more complex. It is crucial to managing the risk. Option as an important financial instrument to hedge risk would be considered commonly for investors. This article considers the option pricing model to establish a snowball option based on Google’s stock price. The paper capture the option’s price based on different scenarios. Moreover, the sensitivity analysis reveals that the higher the volatility, the higher the probability of knocking out early. The likelihood of “knocking in without knocking out” will increase and lead to a lower return. Also, the higher the knock-in price is, the easier the stock price will reach the knock-in price, and the probability of the option to be knocked in will be higher.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
10.2991/aebmr.k.220307.052How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Yingshuo Li
AU  - Wei Wang
PY  - 2022
DA  - 2022/03/26
TI  - The Valuation of Google Snowball Option
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 329
EP  - 333
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.052
DO  - 10.2991/aebmr.k.220307.052
ID  - Li2022
ER  -