The curse and the blessing of returns … additive vs. compounding land and what are the PROs/CONs between them.
[Read More]Historical volatility
Trading
Historical volatility (also called realized volatility) measures how far the normal standard deviation is from expected mean, over a given period of time.
[Read More]Black-Scholes formula
Finance
Black-Scholes formula… maybe not as important and well-known as compounding interest-rate but still the most famous formula among options traders. Here are the formulas that you will find in financial books.
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