Re:The Black-Scholes formula, explained (2019)
by JumpCrisscross on Sunday April 11, 2021 @09:21PM
(#26775246)
> market makers could send a much smaller message containing their latest risk and model parameters, and have the exchange run a standard model internally to generate the quotes?
No market works like this. The smaller-still message of a price is sent and disseminated. When you buy a flight, you want the price of the ticket—not the airline’s fuel and tariff costs.
No market works like this. The smaller-still message of a price is sent and disseminated. When you buy a flight, you want the price of the ticket—not the airline’s fuel and tariff costs.