Comparison between Bachelier and Black Scholes Models
The Bachelier model is a mathematical model used to price European options.
This model is considered to be the first mathematical treatment of the concept of Brownian motion and it formed the basis for many subsequent studies in the field of mathematical finance.
I summarized the assumptions and limitations of Bachelier model.
Then I compared option pricing results in Python between Bachelier model and Black Scholes model.
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The Python code is uploaded into https://github.com/AIMLModeling/Bache...