Valuation of Agricultural Commodity in an Unstructured Nigerian Market Using Black-Scholes’ Model
Onyegbuchulem Chialuka Adline, Nwobi Felix Noyanim, Onyegbuchulem Besta Okey
Asian Journal of Probability and Statistics · pp. 43–50 · Published 24 Oct 2020
10.9734/ajpas/2020/v9i230225Abstract
This paper investigates the pricing accuracy of the Black-Scholes’ model in an unstructured over-the-counter Nigerian agricultural commodity market. Rice prices were valued using the Black-Scholes’ equation. The model’s predicted prices were compared with the market observed prices. Data for the study was sourced from food prices watch from January, 2017 - February, 2020 from National Bureau of Statistics. The result of the study shows that the prices produced by the Black-Scholes’ model provides a good match with the market observed prices. There is also a positive and significant correlation between the Black-Scholes’ model and market observed prices. Recommendation was made that Black-Scholes’ model should be used as an efficient model for pricing derivatives contracts of Nigerian local securities.
Cited by 0
No indexed citations yet.
Related research
- RNA Isolation from Purified Rice Necrosis Mosaic Virus Particles — shares topic coverage
- Identification of in-vitro PEG Mediated Drought Tolerance Genotype in Rice (Oryza sativa L.) — shares topic coverage
- Chemical Properties, Microbial Biomass and Enzyme Dynamics of Post-Harvest Soil on Transplanted Rice with Effect of Organic Amendments — shares topic coverage
- Performance Evaluation of Some Rice Varieties under the System of Planting in Egypt — shares topic coverage
- Genomic DNA Diversity Analysis of Some Accessions of Oryza sativa L. for Breeding and Conservation Strategies — shares topic coverage
Article metrics
Real usage data collected on this platform.
0
Page views
0
PDF downloads
0
Outbound clicks
0
Citations
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
No views recorded yet.
Traffic sources
Referring site, by host.
No traffic recorded yet.
Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.