New answers tagged vega
You are onto something, it is inconsistent to be calculating vega with Black-Scholes considering it assumes that volatility is constant. Black-Scholes is not a good for modeling option prices/implied volatility. It's a very good intuitive model (like the CAPM), and a good way of organizing thoughts, but it is not an accurate depiction of reality. If it ...
On the topic of your second paragraph, the author below is the authority on precisely that topic. Start at page 19 https://www8.gsb.columbia.edu/leadership/sites/leadership/files/Is%20economics.pdf
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