The Black-Scholes equation transformed options market and Wall Street. Here’s how it works, where it breaks, and why it still drives today’s markets.
I studied the formula back at the university, but I didn’t realized then how critical it was
Glad you explored something new for yourself! 😊
With all the sophisticated hedges put on, Long Term Capital bust quite awhile ago..if I rember right was due to taking out hedge at critical time…they have to be rescued to the tune of 10 billion or more to avert market collapse
I studied the formula back at the university, but I didn’t realized then how critical it was
Glad you explored something new for yourself! 😊
With all the sophisticated hedges put on, Long Term Capital bust quite awhile ago..if I rember right was due to taking out hedge at critical time…they have to be rescued to the tune of 10 billion or more to avert market collapse