Today, our mini-series dissecting all the ins and outs of the Black-Scholes Model continues, and we tackle the topic of z-scores. Your standard z-score is something that every undergrad business student will encounter in a, as it helps describe the relationship between . But, how does this apply to the BSM? Frank joins the discussion today to help show us exactly how.
You can watch every part of the Black-Scholes series below: