3 ms·
This would be fine, except that the short, rare, unpredictable spikes are overall responsible for as much variation in value as the "predictable" movements, whi
by wazoox 16y ago
This would be fine, except that the short, rare, unpredictable spikes are overall responsible for as much variation in value as the "predictable" movements, which more or less makes all the exercise quite pointless.
- yummyfajitas 16y agoHow does the fact that a model has two features make understanding one of them pointless? If you are seeking a grand unified theory of everything, maybe it's pointless. Black Scholes is just a model. If you are seeking to make money, Black Scholes is one tool that can help you do that. And make no mistake - people do make billions trading models which incorporate elements of Black Scholes.
- wazoox 16y agoThey make billions for some time, then all their profits are wiped out by some "black swan". Fortunately, our governments are here to save the day...