From Theory To Practice - January 25, 2021 - Option Pricing in Wild Markets

Published: Jan. 25, 2021, 7:36 p.m.

One thing about the financial markets is that the prices we see always reflect the true worth of the company, given all the available information. But during chaotic times with extremely wild price fluctuations, even the pricing modelsĀ can have a difficult time catching up with the real-time price of the stock. And today, we see this exact phenomenon occurring in GME.