2
$\begingroup$

It seems to me that for math stack exchange, problems dealing with the Black Scholes option pricing model are on topic. Are they? If they are not, I think they should be. Please comment.

For example, is this question on topic: Finding a price of a call option using the Black Scholes model

$\endgroup$
7
  • 5
    $\begingroup$ This needs some context. As a stochastic differential equation, of course Black-Scholes is on topic. To be sure, the more finance based the question is, the less on topic it will be for this site. $\endgroup$
    – lulu
    Mar 28, 2023 at 21:10
  • $\begingroup$ How about a question where you are asked to apply the Black-Scholes model to find the value of a call option? $\endgroup$
    – Bob
    Mar 28, 2023 at 21:11
  • 2
    $\begingroup$ Are you asking about your question from earlier? If so, you should link to that in this post. $\endgroup$
    – lulu
    Mar 28, 2023 at 21:13
  • 3
    $\begingroup$ In any case, I'd say that asking us to check a purely mechanical set of computations is off topic. It's just a matter of plugging numbers into a pre-packaged formula. There, I thought it was sufficient to just provide you a link to a good online calculator that could verify your computation. Beyond that, what is there to say about it? $\endgroup$
    – lulu
    Mar 28, 2023 at 21:15
  • $\begingroup$ @lulu I am and I will add a link to the question in my question. $\endgroup$
    – Bob
    Mar 28, 2023 at 21:15
  • 8
    $\begingroup$ Searching for "black scholes pricing" returns plenty of hits; e.g., 1, 2, 3. So clearly some questions about it are on-topic. But if it is just a matter of verifying that a plug-and-chug is correct, then you will likely see it closed as not within the scope of the site. Much like questions about multiplication or the multplication algorithm are on-topic, but a post asking us to verify that $7\times 13$ really is $91$ will likely be closed. $\endgroup$ Mar 28, 2023 at 21:25
  • 3
    $\begingroup$ There's also a SE for quantitative finance if you want to read more there $\endgroup$
    – Alexander Gruber Mod
    Mar 29, 2023 at 17:20

0

You must log in to answer this question.

Browse other questions tagged .