Mar

15

 Why does Scholes say that option pricing is like crowd sourcing as opposed to the market itself? Also are option prices calling for a decline or rise? And are option prices generally right? If it were worth studying what Dr. Scholes wrote in detail, I would have many more questions but since he was well known I think as the weakest link in our program, I will not delve into it, possibly at my cost.

Alex Castaldo writes: 

The article in question is

"Return to 'Old Normal' Hasn't Begun Yet: Scholes and Alankar After Trump's election, option prices signaled greater inflation risk. That no longer seems to be true."
By Myron Scholes and Ash Alankar

I don't quite grasp what option markets are telling us, and how it relates to real and nominal rates.


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