FEN has a great article on some of the limitations of Black-Scholes World! It is by Ross Miller and it is definitely worth your time!!! It is both thought provoking and funny at once. A great combo!!!
Be Careful What You Model
A few quick highlights:
* "You have in your hand (or on your screen) an at-the-money call option with a year until it expires. Because you are in BSW, you know
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