# Tag Info

### Does it matter that Bachelier IV differs from BS IV for a given option price?

Neither of them is correct or incorrect, these are just two different numerical inputs that one should plug-in into two different formulas to get the market price of an option given all other ...
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A number of models used in options pricing, but by no means all, are homogeneous of degree 1 in spot price and strike. This means, $$C(\lambda S, \lambda K) = \lambda C(S,K)$$ If you differentiate ...