| Topic Name: |
Trading Models |
| Message Name: |
pricing |
| Date Posted: |
10/13/2007 |
| In Reply To: |
I know that there are a lot of financial models out there, but usually what do traders use?
black-scholes? arbitrage-free pricing ? Garman and Kohlhagen (1983) option pricing formula ?
Can someone educate me on this?
What models to use to figure out the risk of high investment grade bonds? How about trading crude oil?
Thanks! |
| Message: |
you might check out Nassim Taleb's Dynamic Hedging and read a couple sections in the book. He talks about pricing models. "It is better to use a model with the smallest number of parameters to estimate"
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