International Journal of Pure and Applied Mathematics Volume 119 No. 4 2018, 661-668 ISSN: 1311-8080 (printed version); ISSN: 1314-3395 (on-line version) url: http://www.ijpam.eu doi: 10.12732/ijpam.v119i4.8 P A ijpam.eu ESTIMATION OF THE BASIC STOCK OPTION PARAMETERS IN THE SENSE OF ITO STOCHASTIC DYNAMICS S.O. Edeki 1 § , M.E. Adeosun 2 , G.O. Akinlabi 3 , I. Adinya 4 , J.I. Ejiogu 5 1,3,5 Department of Mathematics Covenant University Canaanland, Ota, NIGERIA 2 Department of Mathematics and Statistics Osun State College of Technology Esa-Oke, NIGERIA 4 Department of Mathematics University of Ibadan Ibadan, NIGERIA Abstract: In this paper, stock price basic parameters: expected value and volatility are being estimated in the sense of Ito stochastic dynamics. For model efficiency, stock exchange data of DBS Group Holding Ltd (D05. SI) spanning between May 23, 2010 to May 15, 2016 (weekly data with 312 sample size) are considered. It is remarked that the data, and the proposed models have many applications in financial institutions, and other areas of applied sciences. AMS Subject Classification: 91B25, 93E35 Key Words: option pricing, stochastic model, Ito calculus, Black-Scholes model, stock exchange market Received: December 8, 2017 Revised: May 10, 2018 Published: July 29, 2018 c  2018 Academic Publications, Ltd. url: www.acadpubl.eu § Correspondence author