The Skinny On Options Math - March 3, 2021 - Why Normals Are Normal
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English - March 03, 2021 15:38 - 19 minutes - 18.3 MB Video - ★★★★★ - 173 ratingsInvesting Business Education How To Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
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Evidence all around us, from the volatility skew to the empirical distribution of returns, shows that the Black-Scholes model assumption of normally distributed returns is flawed.
Today we investigate why, despite this, the normal distribution remains the most ubiquitous and safest assumption to make in an uncertain world.