fortune_cookie
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It's not too bad.
The formula itself is a big mess, but it makes intuitive sense. You can break down the formula into parts and understand what each part means.
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Finance Electives (1 Viewer)
- Thread starter fortune_cookie
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The formula itself is a big mess, but it makes intuitive sense. You can break down the formula into parts and understand what each part means.
seremify007
Junior Member
LOL I am referring to the practical application of the BS model to valuation of options. What you learn in 2624 is just the formula and from memory you get given all the assumptions in nice easy-to-substitute numbers. I'm referring to the challenges and limitations in reality of using that data (i.e. the limitations in how it is actually obtained and what it means; e.g. data series breaks, measurement period changes, etc).
seremify007
Junior Member
ps. I think this is a great example of where in uni you learn the basics of something but then when you go to use something in practice, it's a) assumed you know what they're talking about; and b) you are building on top of that assumed knowledge with material which isn't able to really be taught/explained in uni.
That all being said, what I really do regret not understanding is statistics. Why oh why did I do the bare minimum to scrape through stats! (I even used a book called "The complete idiot's guide to statistics").
That all being said, what I really do regret not understanding is statistics. Why oh why did I do the bare minimum to scrape through stats! (I even used a book called "The complete idiot's guide to statistics").