Debunking option models

Nasser Saber has written a fascinating book. The main message is that Black, Scholes and Merton (BSM) got it wrong, and that top academics in finance are still trapped in a framework designed and published in the 1970s. He argues that the option pricing model they came up with should be more accurately described as "the right to default on a forward". This is the recurring theme throughout the book.

The chapters scrutinise the structure of the BSM model, the variables that appear in it, and the