IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 11 NO. 3 2025
DOI: 10.56201/ijbfr.vol.11.no3.2025.pg17.30

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Pricing European Options by Analytical Methods with Applications in Fidelity and Access Banks Share Prices.

Amadi, IU, Obeten, BO, Jaja, J and Edeh Onyemaechipeter Chibueze

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Abstract

This paper considered the framework of Black-Scholes model of European options on share price of Fidelity, Access and their future merged banks which gave closed form prices of Call and Put option prices with variations of maturity dates, affecting real life changes for capital markets. More so, the share price of the independent banks was used to form a system of linear equations; which gave three different solutions according to the banks under considerations whose solutions represents different outcomes for share prices to analyze and predict for the purpose of investment plans for capital markets by means of analytical method. Finally, we state and prove a proposition on solution of system of linear equations to show that our share price follows exponential series over time and obey some physical laws arising from financial markets. This paper offered here has profound inference for future studies of option prices and may one day help solve the problems of option traders and society at large.

keywords:

European options, Share prices, Stochastic Analysis, Fidelity and Access Banks.

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