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The Black-Sholes equation is an attempt to calculate risk. Of course, risk is difficult to pin down to a number, and different people will assess risk different
by WalterBright 3mo ago
The Black-Sholes equation is an attempt to calculate risk. Of course, risk is difficult to pin down to a number, and different people will assess risk differently.
But that's irrelevant to my point, which was that risk is factored into the price.
- PaulDavisThe1st 3mo agoYou made a very specific claim that more risk == lower price. That isn't true as a general rule, though it may be true much of the time.