Pricing Options using Black Scholes Merton

Black Shoals does not consider volatility or assumes that it is constant but it is not the case. When trading, I often see options pricing vary from what my assumptions are.

Awesome video sir. Please what parameter is "d"?

Is it possible to trade vix index by using quantitative approach?

Hey Patrick, great video! That being said, I am still a little confused about why we are using implied volatility. The whole point of pricing an option is to substantiate what the derivative is worth on an intrinsic level and then compare that to what the market is pricing these options at. If we back inputs out of current option prices, how is this not counterintuitive to the whole point of valuing the option? What if the market as a whole is wrong about the perceived volatility? We would have to assume efficient market theory is correct (which I refuse to believe lol) ... anyways, pardon the lengthy question, just trying to better understand practical application of this model

Huh, this made a lot of things click. Thank you

Volatility a “bit” of a chicken egg problem 😂😂😂