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cdchavezq submitted a new resource:
Bitcoin Options Live Snapshot Volatility Surface - Capture a live snapshot of Bitcoin options, build intuition from the Black–Scholes baseline, then fi
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Bitcoin Options Live Snapshot Volatility Surface - Capture a live snapshot of Bitcoin options, build intuition from the Black–Scholes baseline, then fi
The Black–Scholes model assumes an arbitrage-free and perfectly efficient market. In theory, this means that if an option’s market price deviates from its theoretical price, traders could exploit the difference through arbitrage, quickly restoring equilibrium. Under such conditions, implied volatility would remain constant across strikes — exactly as the model suggests.
However, real markets are far more complex. Market makers may quote prices above or below the theoretical value due to...
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