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write a 125 word thank you response to Thanks for your post! I think you hit on a good thought experiment in this prompt deciding
write a 125 word thank you response to "Thanks for your post! I think you hit on a good thought experiment in this prompt deciding whether Black-Scholes is salvageable. My reaction to salvageability is any model that attempts to predict the future with an acute point of precision is going to have its flaws and be wrong many times. But the most important thought process here is establishing a baseline of thought. If we're going for an extreme perspective, aspects of Black-Scholes can be taken back to the Dojima Rice Exchange. This exchange is considered the first modern futures market. It was sanctioned after prices of rice fell in the 1720s. "Trade rules and practices developed by the Dojima Exchange were later emulated by many commodity, equities and financial futures exchanges that have developed in Europe and beyond since the 1800s" (Reuters, 2021). This demonstrates how systems can develop and evolve from the most simple concepts like rice trade. And now having a model like Black-Scholes can be the new rice exchange to traders in the future
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