3 ms·
The Black-Scholes equation describes the unconscious biases that influence the price of options. It is able to beautifully separate the one quantity that every
by sheepscreek 3y ago
The Black-Scholes equation describes the unconscious biases that influence the price of options. It is able to beautifully separate the one quantity that every trader prices differently from the rest. That’s volatility.
All the other factors, time including, are the same for everyone.