This is the first article I published at RePec / IDEAS.
Criticism regarding the Black and Scholes model isn't new. The model was about to be labeled 'historic'. It is new now that the model has become an autonomous, unreflected item in international accounting standards and law allowing "creative" accounting. There is no economial relation between the future value of an underlying and it's current volatility. Predictions - pricing of derivatives means predicting - remain uncertain. Findings are based on empirical, experimental techniques using fictituous derivatives, others.
Please check out the full article here.
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