Recent content by pkxt

Thank you for your response! Can you perhaps point me to some academic sources? I read something that claims the implied volatility is an estimate of the variance of the subjective probability of asset return -- is that just because they are not drawing the distinction between subjective and...

Hello, I understand that the normal distribution is used to model stock returns in the Black-Scholes formula. Can someone please tell me whether this is meant to be the subjective probability distribution or the risk-neutral probability distribution? Thank you!

Hello, I understand that the skewed t-distribution and the noncentral t-distribution are generalized, asymmetric forms of the t-distribution. Are they the same thing? If not, what is the difference between them? Thank you!