What is the Best Way to Understand the Black–Scholes model?

Erik Kobayashi-Solomon

March 6, 2017

Scrolling through my Quora feed the other day, I found someone asking for an explanation of the Black-Scholes Model. Everyone thinks that option pricing is difficult and arcane, but if you read the brief article below, you will have a better intuitive grasp of how option pricing works than 99% of option traders. The following …

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