This chapter focuses on examining the significance and role of pricing options for stocks in stock markets in the United States, and finds that many economists and financial researchers developed different theories and models of pricing options. A. James Boness, a Ph.D. student from the University of Chicago, was one of the young researchers who simplified the assumptions of pricing options. These assumptions suggested that option traders were immune to risks and that potential returns from all stocks with options were the same. Another alternative approach to options and warrant prices involved developing a priori models and empirically extracting the determinants of these prices.
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