Stock Trading Mathematics – Continue

 

 

 

 

Is calculus 微積分學 applied in stock trading?
Basically it needs Calculus in stock trading depending on how you choose incorporating it in analysis. But it is NOT necessary as a requirement.

Alternatively simply old fashioned and reliable Algebra can be used. Also you can dive into Mathematical Finance. Some advanced ideas can be found on Internet or in similar books soled in Amazon.com such as; option futures and other derivatives .

Probability and Statistics (P&S) incorporate Calculus tools as well. Having a good understanding of P&S is more beneficial in the long run in many facets of life beyond trading, finance and others.

 

 

 

Black Scholes Model
The Black Scholes model, also known as the Black-Scholes-Merton model, is a model of price variation over time of financial instruments such as stocks that can, among other things, be used to determine the price of a European call option. The model assumes the price of heavily traded assets follows a geometric Brownian motion with constant drift and volatility. When applied to a stock option, the model incorporates the constant price variation of the stock, the time value of money, the option’s strike price, and the time to the option’s expiry.

          

 

 

 

Using Calculus to Make Money on the Stock Market Problem
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Introduction to the Black-Scholes formula
Finance & Capital Markets