Module 40.7 LOS 40.m: Role of Gamma Risk in the BSM model
The BSM model predicts that changes in stock price is happens continuously, not abruptly. If this were the case, there …
black scholes
Module 40.4 & 40.7 LOS 40.k, 40.i: Option Greeks, Synthetic Position, Delta Hedges, Hedge ratio arbitrage
Put-Call Parity and Synthetic Positions Put-call parity is the principle used to generate synthetic longs and shorts. The equation equates …