We address a number of technical problems with the popular Practitioner Black-Scholes (PBS) method for valuing options. The method amounts to a two-stage procedure in which fitted values of implied volatilities (IV) from a linear regression are plugged into the Black-Scholes formula to obtain...

Financial literacy assessments typically rely on sample surveys containing sets of questions designed to gauge respondents' comprehension of fundamental financial concepts necessary for making informed decisions. The answers to such questions, either categorical or continuous in nature,...