EHeller comments on When the uncertainty about the model is higher than the uncertainty in the model - Less Wrong

19 Post author: Stuart_Armstrong 28 November 2014 06:12PM

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Comment author: EHeller 01 December 2014 07:01:04PM *  4 points [-]

So back when I worked for a major bank, no one was really using Black-Scholes for pricing anymore. For specific uses cases, there very much are (proprietary) better options, and people use them instead of just making ad-hoc adjustments to a broken model.