
n a partial differe…al market containing derivative financial instruments such as options, futures, forwards and swaps. The key property of the model is that it shows that an option has a unique price regardless of the risk of the underlying security and its expected return. The model is based on a partial differential equation (PDE), the so-called Black-Scholes equation,…
…If someone’s ever told you to “use your head,” they’re probably referring to the prefrontal cortex, the conscious part of the brain that allows us to reason, delay gratification, and experience the meaning beneath our emotions.