The Mathematics of Options

Abstract

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Forecasting, Valuation and Portfolio Returns of Stock Market Evolution: Problems, Paradoxes and Efficient Information. Worldwide Implications and Romanian Evidence

“…Systems must be automated because the emergence of arbitrage opportunities is hard to observe and is rapidly absorbed by the market. Due to arbitrage (Thomsett, 2017), the forward price of non-dividend shares must be equal to the current price update using the risk-free rate:…”

“…However, participants bet only on the direction of the variance (the buyer on the increase, the seller on the decrease) and in no case on the value of the price at the due date, as required by the definition. As for option theory (Black-Scholes-Merton), Fischer Black himself recognized that the theory had at least nine flaws and incorrect assumptions (Thomsett, 2017). Neither exotic options nor certificates provide methods to predict the evolution of quotations, but at most its direction estimation (by adopting a sell or buy position).…”

Is freedom contagious? A self-regulatory model of reactance and sensitivity to deviant peers.

“…History is certainly rife with examples of rebelliously minded individuals banding together in the shared pursuit of freedom. Former Vice President Hubert Humphrey even went as far as to suggest, “freedom is the most contagious virus known to man.” (Thomsett & Thomsett, 2008 p. 53) For reactant individuals, seeking autonomy could be manifested in sensitivity to everyday acts of deviance by others.…”