Thursday, May 12, 2005
Demystified the Black-Scholes Model
A very interesting presentation on the financial services offered by my current employer, made me nostalgic of the Financial concepts I studied while pursuing MBA. I'm highly motivated to do something and decided to demystify the very famous Black-Scholes formula. I must admit, it wasn't a smooth sail. First, I had to brush my understanding of mathematics and relate it to understand the Black-Scholes formula, it was fun filled experience. Today, I learnt a valuable lesson - Technology is an enabler, when coupled with domain expertise, the combination has the maximum value. I've decided to dedicate some time everyday to gain domain expertise.
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