For fair market value one formula is to take midpoint of bid and ask. Is there a better formula that weights the bid size and ask size ? For example if stock A is trading at bid size 2000 at 10.10, ...
Have a question regarding regular option pricing. In the standard Black-Scholes model, with interest r and volatility $\sigma$. Determine the arbitrage free price at t of an option which at $T>t$ ...