Re:The Black-Scholes formula, explained (2019)
by xtracto on Sunday April 11, 2021 @09:00PM
(#26775118)
This. Back in 2006 when i was doing my PhD in CompSci + Options markets, the Binomial model was the state of the art. IIRC Black-Scholes was usef for historical references, and to understand the underlying variables given the simple assumptions "'closed world" it has. For example, the fact that it serves only for European options.
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Re:The Black-Scholes formula, explained (2019)
by FabHK on Monday April 12, 2021 @05:46AM
(#26777596)
One should maybe distinguish the model (eg Black Scholes market (fixed vol), Dupire local vol, Heston stochastic vol, Merton jump diffusion, etc.) from the technique one uses to compute prices within the model (analytic closed form, PDE, tree (binomial or trinomial), Monte Carlo, other numeric methods).
All of the models (and techniques) I mentioned were well known and in use by 2000.