A random walk down the Black–Scholes

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In this article, we’ll talk about the most famous formula in finance. Perhaps some readers looked at the derivation of the Black-Scholes formula once, saw phrases like ‘continuously revised delta hedging’ and decided that all options are priced according to some dark magic. I want to provide a very intuitive derivation of the Black-Scholes formula without second-order differential equations and hardcore mathematics. In fact…