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• n  a stochastic process consisting of a sequence of changes each of whose characteristics (as magnitude or direction) is determined by chance

News & Articles

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• Understanding Option Models
  Many option traders do not understand the theory behind the Black-Scholes model. The actual idea is quite simple. The underlying assumption is that the stock price moves as a random walk. There is no assumption of directional movement. The only assumption is that the recent historical volatility will persist. Note that the volatility is stock specific. Different stocks will have different ...
  Aug. 2, 2013 - TheStreet.com