Black–Scholes

SC006 · Stochastic Calculus · Chapter 6 of 6. Twelve interactive steps with a paced, recorded Coach–Zon conversation.

Derive the pricing PDE, interpret risk-neutral probabilities and test the limits of discrete hedging and constant volatility.

Make a prediction, change a control, read the formula and explain what changed. This is a model-based mathematical lesson, not a forecast of market returns.

Twenty possible stock paths cross a red strike, while a drift slider moves the physical-payoff average beside a fixed model price.

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