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Acceleration Lagrangian 1 Option pricing 1 Quantum finance 1 Stock price 1 Stock velocity 1
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Baaquie, Belal E. 1 Bhanap, Jitendra 1 Du, Xin 1
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Physica A: Statistical Mechanics and its Applications 1
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Option pricing: Stock price, stock velocity and the acceleration Lagrangian
Baaquie, Belal E.; Du, Xin; Bhanap, Jitendra - In: Physica A: Statistical Mechanics and its Applications 416 (2014) C, pp. 564-581
The industry standard Black–Scholes option pricing formula is based on the current value of the underlying security and other fixed parameters of the model. The Black–Scholes formula, with a fixed volatility, cannot match the market’s option price; instead, it has come to be used as a...
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