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Saturday, April 27, 2013

option pricing models.

my self-confidence is often on the high end, sometimes to the extent that others and i can both agree that i'm too full of myself. but this is hardly the case when i have to deal with option pricing models - they are so evil that they have the dark power to make me lose faith in myself almost entirely. 

3 years into my business specialisation, i should be quite familiar with option pricing models because they pop up every now and then. there were certain points of time when i thought i understood them (like last year, when i had no choice but to do well for my binomial option pricing quiz to make up for the 1.5/20 score obtained for the first derivative quiz), but those moments of accomplishment didn't last long. because of this, i'm now as lost and confused about option pricing models as if it were my first encounter with them.

i believe that now is probably the time when i understand banking and finance the most in my entire life, since i've spent the entire revision week on nothing but banking and finance. sadly, being at this peak doesn't necessarily equate to understanding option pricing models.


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