Do option traders use the Black–Scholes formula
Do option traders use the Black–Scholes formula?
Expert
In spite of this, option traders do still use the Black–Scholes formula for vanilla options. All the models which have been invented, the Black–Scholes model is even the most popular for vanilla contracts. This is simple and easy to utilize, this has very few parameters and this is very robust. Its disadvantages are quite well understood. But very frequently, instead of using models without several of the Black–Scholes’ disadvantages, people adapt’ Black–Scholes to accommodate those problems. For illustration, when a stock falls dramatically we frequently see a temporary increase in its volatility.
What are the primary requirements for a successful JIT inventory control system?
In financial theory how financial data satisfied?
What is Gamma Hedging?
How is quantity of model risk dependency on vega hedge?
how does adquate liquidity ensures a good international monetary sustem
Explain the Modern portfolio theory.
State the term dispersion trading?
Explain the tool of Discretization methods in Quantitative Finance.
Explain econometric models.
Define the term correct delta with an example?
18,76,764
1931179 Asked
3,689
Active Tutors
1453304
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!