please end this thread asap @thecoder. We cannot have more people making this discovery. It's already creating a buzz among those who are trading this secret.
If the BSM model is right then it has to function also with such high r=25%. Since it doesn't, then it's wrong. Q.E.D. Btw, even such basic logic seems not your strength, you poor old man... What do your kids say?
Your exposure is all rho. The pricing is correct. You're wrong in the head and quite suitable for Trump's next Fed Chair.
@destriero, you are risking to be banned... last warning! Either you are constructive and on-topic, or I've to report your crap snippet postings that have no logic in them, as usual with you. DON'T SPAM MY JOURNAL! YOU SOB! GO BACK TO YOU OWN USELESS JOURNAL! You are now in my ignore list. If you still spam my journal then you will be reported.
Dude, you're fucking wrong. Ask why the call is correctly discounted from your "fair value" figure and then.... [redacted].
lol he blocked me after his hurtful and rude comments. He is literally too dumb to debate. You'll have to unblock to hit report, numbnuts. lulz.
At expiry the call will be worth 28.4025. What's that worth today? The discount factor is 1.284025, so the call is worth 28.4025/1.284025 = 22.1199. Sometimes everyone else really is wrong, but in general if you find you disagree with the entire world, you might want to entertain the possibility that there's something you don't understand.