from old times:

3 it is highlighted the difference between no arbitrage and settlement pricing of the options and something else. This ("and something else") is a classic :-D Para subir al cielo, Para subir al cielo se necesita, Una escalara grande, Una escelara grande y otra chiquita https://www.youtube.com/watch...

3 it is highlighted the difference between no arbitrage and settlement pricing of the options and something else. This ("and something else") is a classic :-D Something is related to my point on options pricing, which interprets premium as settlement between buyers and sellers and therefore implies...

I submitted a paper to  https://www.slideshare.net/list2do/options-pricing-and-hedging https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3056738 I will appreciate your comments. In this paper 1. informal differential form of the BSE derivation is replaced by its formal integral form 2. it is show...

here's a good idea I f the two parties were to merge, they would be a genuine UK-wide third party with safe seats, a solid party membership, and real power. The DUP’s entrenched status in Northern Ireland is just what UKIP needs to bring stability in changing times. Add Farage into the mix and thin...

whether these two initiatives will finished similarly?

I submitted a paper to 

https://papers.ssrn.com/sol3/papers.cfm ... id=3056738
I will appreciate your comments.

Are there more similarities between UK out of EU and Catalonia out of Spain besides referendums and negative reactions from EU and Spain correspondingly?  

The Fed's Massive Bubble Is Leading To Massive Economic Pain First, the financial problem was called surplus value problem. Which probably was discovered by Karl Marx. Surplus was not invested in the areas where it comes from. Where it was used is other problem. Now values of 'surplus' in some coun...

What do you think is the best model for trading volatility using only European Vanilla Options and the underlying? And why? Trading does not a formal environment and a good trading idea today might not be a good idea tomorrow. Hence it might be not a perfect idea to talk about 'the best'. For a few...

In the binomial model you don't care about mu: if the stock goes up or down ..your P&L of the hedged call is in both cases zero. This means that the probability of going up -and hence the value of mu- does not matter if you hedge! outrun, You right. In BS scheme distributions S up-down are given wi...

5) In the hedged portfolio we also use delta shares of the real stocks ( mu, sigma) not ( r, sigma).

Your mu is set to r for stock options! I interpret BS formula in other way.  1) the real stock eq ( mu, sigma ) does not depend on the fact whether options on this stock are traded or not, ie it holds its original sense itself. 2) the option underlying is a heuristic asset, which actually does not ...

In BS the cashflows are values against a constant rate you can hedge with a bond. Just like the stock's expected return is linked to that same rate. edit: money in the bank, money invested in stock, borrowed money, .. al assumed having the same rate/expected yield in B&S BS hedged portfolio values ...