Stock Market & Derivatives & The Golden Mean Parabola

Abstract

Paul T E Cusack

There isn’t a single equation that governs the entire stock market due to its complexity and the multitude of factors influencing it. However, there are several important mathematical models and formulas used to understand and predict market behavior. One of the most notable is the Black-Scholes equation, which is a partial differential equation used to price options and other derivatives12. This model helps in determining the fair price of options by considering factors like the underlying asset’s price, volatility, time to expiration, and the risk-free interest rate. Source: Copilot

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