Learn about the Black-Scholes model, how it works, and how its formula helps estimate fair option prices by weighing ...

The financial media will tell you that options are more risky than plain vanilla stocks. This is true if we define risk as the volatility of returns. But practitioners will tell you that volatility is ...

Index options on the S&P 500 and Nasdaq are persistently overpriced. Unconstrained investors can reap superior risk-adjusted rewards by trading covered calls or selling puts on the S&P 500 and Nasdaq.

If we look back over the history of modern financial markets, one of the most influential developments was the Black-Scholes option pricing formula. However, there are a number of misconceptions ...

Fuzzy set theory has emerged as a powerful tool to address the inherent imprecisions and uncertainties in financial modelling, notably in option pricing. By incorporating fuzziness into conventional ...