Stochastic Volatility and Black – Scholes Model Evidence of Amman Stock Exchange
DR. Mohammad. M. Alalaya, Prof. Suliman A.Alkattab, DR. Ahmad AlMouhtaseb, DR.Jehad Alfarajat

Abstract
This paper is an attempt to decompose the Black – Scholes into components in Garch option mode, and path dependence of the terminal stock price distribution of Amman Stock Exchange (ASE),as Black – Scholes the leverage effect on this paper result of analysis is important to determine the direction of the model bias, a time varying risk, may give a fruitful help in explaining the under pricing of trade stock shares and traded options in ASE. Generally, this study considered various pricing biases related to warrant of strike prices, time to time maturity. The Garch option price does not seem overly sensitive to (a,B1) parameters, or the time risk premium, variance persistence parameter, Ω = a1+B1 heaving on the magnitude of the Black –Scholes bias of the result of analysis, where the conditional variance bias doesn't

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