Questions tagged [elasticity]
The elasticity tag has no usage guidance.
What's the difference between demand elasticity and demand volatility? [closed]
What's the difference between demand elasticity and demand volatility? Demand elasticity: https://www.investopedia.com/terms/d/demand-elasticity.asp Demand volatility: https://www.sdcexec.com/home/...
A more mathematically rigorous explanation for why in the B-S model, the expected return on a call goes down as the stock price goes up
A problem asks whether the following statement is true assuming the Black-Scholes Framework: The expected return on a call option goes up as the stock price goes up. The solution is: The statement ...
How do we know that the instantaneous rate of return on this option, $\gamma$ is negative?
I am self-studying models for financial economics and encountered the following problem: I don't see how the author can conclude that $\gamma = -0.62$. Let's rearrange the second to last equation: $$\...