Learn about the Black-Scholes model, how it works, and how its formula helps estimate fair option prices by weighing ...

Affine processes provide a versatile framework for modelling complex financial phenomena, ranging from interest rate dynamics to credit risk and beyond. Their defining characteristic is the affine, or ...

Stochastic volatility is the unpredictable nature of asset price volatility over time. It's a flexible alternative to the Black Scholes' constant volatility assumption.

Volatility forecasting is a key component of modern finance, used in asset allocation, risk management, and options pricing. Investors and traders rely on precise volatility models to optimize ...

The Black-Scholes model remains the 2026 gold standard for pricing trillions in derivatives. It uses five key data points: stock price, strike, time, interest rates, and volatility. This math-heavy ...

Section III describes the process of fitting five different Heath, Jarrow, and Morton models to United Kingdom Government Bond yield data: models with 1, 2, 3, 6 and 15 factors. We conclude Section ...

Volatility modeling is no longer just about pricing derivatives—it's the foundation for modern trading strategies, hedging precision, and portfolio optimization. Whether you're trading gold futures, ...

Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. The VIX Volatility Model (VVM) is closing in on a 30% gain on the current sell ...