In practice, rather than to presume a hypothetical condition that needs be validated theoretically, it is sufficient to accept a real condition that exists and can be directly validated for practical purposes. This paper presents a practical approach to formulating the theoretical price of a...

In this notes, I argue and show that the so-called Efficient Markets Hypothesis (EMH) is no less than a false prophecy, the Black-Scholes-Merton (BSM) formula - a perfect rendition of EMH - no more than a parlor trick, and risk-neutral pricing models - generalisations of BSM - severe...