Recent content by OptionStudent

Thanks sss12, I think I get the point. The party who initially wrote the contract was out of the picture as soon as he or she sold it. The contract's value will fluctuate as time to expiration decreases and the stock index changes. If I want to monetize, I would have to sell the contract...

Quiet1's post encourages me to rejoin this thread, which I started with what was intended to be a simple, practical question. In discussing the difference between a "formula" and a "model," Quiet1 is operating on turf where I am more comfortable than I am when reading trading tables...

I appreciate the diverse inputs Error Correction Funder, ajacobson, and stepandfetchit provided to my question. I plan to pursue their suggestions for addressing limitations of the Black-Scholes model. However, I do remain confused about the simpler point that initially motivated me to post...

This is a beginner's question about the relation between theory and practice. Read on only if you like to teach people who do not know very much. My question is about how to apply the Black-Scholes equation to E-mini S&P Futures prices. As will be obvious, I know something about the theory...