Option pricing is a fundamental concept in the realm of quantitative finance, playing a pivotal role in managing risk, making investment decisions, and deriving value from financial derivatives. Whether you’re a seasoned trader or an aspiring investor, grasping the intricacies of option pricing is essential for navigating the complex landscape of financial markets. At its core, an option is a contract that grants its holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified timeframe. These assets can range from stocks and bonds to commodities and currencies. Option pricing
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