Exploring the future of financial data architecture: AI-native financial data foundation, large-scale financial data processing, and enterprise data quality & governance.
Tag: Black-Scholes
In the last blog post, we explored the Black-Scholes-Merton model and learned that it is the industry standard for pricing option contracts. However, the BSM model is designed for options on stocks and similar spot market assets, and it is not directly applicable for pricing futures options contracts, mainly due to the following differences between … Continue reading Futures Options Pricing with Black Model
In the previous blog post, we saw that the binomial model closely approximates option prices as the number of periods increases. The binomial model is known for its flexibility, intuitiveness, and fewer assumptions. So, why do we still need the Black-Scholes-Merton (BSM) model for option pricing, especially given its restrictive assumptions? One of the main … Continue reading Black-Scholes-Merton (BSM) Model
To kick off this blog post, let's start with a quick experiment where we compare option prices derived from the binomial model with increasing periods to those calculated using the Black-Scholes Model (BSM). Here, we run two sets of option pricing calculations. In the first set, we use the multi-period binomial model, calculating the option … Continue reading From Binomial Model to BSM
Data Ninjago (Financial Data Architecture) 
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