The final part of our analysis focuses on the practical insights that can be drawn from the previous analysis.

For Methodology 1 (ie the standard method) we constructed 20 spot price scenarios, thereby aiming for the prevailing average spot price at the time to be the median/near the median of that sequence of hypothetical ending underlying prices upon option expiration. For Methodology 2 (ie the standard deviation method) we captured yearly daily logarithmic returns of these five pharmaceutical stocks and used them for computed annualised figures for stock returns and standard deviation. We adjusted th

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