On: Stock Option Pricing Inference

[tcgv]

Hi again,

So I ran the analysis again using the standard MLE technique you suggested and got the following results:

- Gaussian Model: σ = 0.0473

- Cauchy Model: σ = 0.1443

Quite an improvement from the original least squares regression approach I used!

You can find the updated plots below:

- [Probability Distributions] https://imgur.com/da8dRzm

- [Option prices chart] https://imgur.com/5hey110

[tcgv → tcgv]

For reference, I just updated the code and plots in the article. I also did some minor changes to the text and fixed an issue with the generation of random samples, which had a small impact in the estimations.

Left some notes at the end describing these changes, along with a reference to the original version.