Quantitative Studies Vol 1,No.7,Oct.2017
Today many equity derivatives are traded on organized and over-the-counter markets.Numerous models allow market participants to value them and manage the associated risks daily.The idea of this study is,for vanilla equity options,to understand the Black and Scholes model,the most commonly used model in the matter,and confront it with reality.Therefore,we will begin by recalling known results,and then we will raise the challenges encountered when applying them in a practical context.