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On Black-Scholes assumptions
Of all the assumption that we make in the B-S model, which one is the most relevant (i.e. most realistic) and which one is the most unrealistic ?Why ?
On Black-Scholes assumptions
QuoteOriginally posted by: gegradOf all the assumption that we make in the B-S model, which one is the most relevant (i.e. most realistic) and which one is the most unrealistic ?Why ?this is a brainteaser?
On Black-Scholes assumptions
Here's what the description of this section says "lateral thinking puzzles, logic problems, interview questions... "
On Black-Scholes assumptions
QuoteOriginally posted by: gegradHere's what the description of this section says "lateral thinking puzzles, logic problems, interview questions... " What is your greater weakness? (another perfectly valid interview question)
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On Black-Scholes assumptions
What are the assumptions of the Black-Scholes model?
On Black-Scholes assumptions
kryptonite and long legged blondes of the female human variety
Last edited by daveangel on March 2nd, 2008, 11:00 pm, edited 1 time in total.
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On Black-Scholes assumptions
QuoteOriginally posted by: gegradOf all the assumption that we make in the B-S model, which one is the most relevant (i.e. most realistic) and which one is the most unrealistic ?Why ?The price of a derivative should be equal to the cost to replicate it. And either zero transaction costs or the normal continous distribution.