Breakingviews | Black-Scholes

Feature

08 Nov 2007 09:39

Do Traders Use Black-Scholes?

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The Black-Scholes-Merton option pricing model won two of its authors a Nobel Prize. But two qualified critics argue that options traders don’t really use the model. That claim makes much of quantitative finance look like little more than a marketing exercise. Pablo Triana explains.

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