Repurposing our IV code to solve for Stock Price.

I received a question in the comments on whether one could use the Black-Scholes model to solve for the price of a stock. The answer is yes given one knows the implied volatility and price of the corresponding option (we will use calls in this video). The process and code is essentially the same as we used to calculate the volatility. This is a quick video detailing the process. I recommend watching the original Newton’s Method video for most of the details.

Original Newton’s Method Video: https://youtu.be/Jpy3iCsijIU

Github: https://github.com/kpmooney/numerical_methods_youtube/blob/master/root_finding/implied_volatility/vectorized/Stock%20Price%20Root%20Finding.ipynb

Tip Jar: https://paypal.me/kpmooney