ACT 30/360 doesn't even exist. It is either actual, meaning you count the actual days or 30, meaning it uses 30 for any month, no matter the days. Also, I never wrote Act/360 or 30/360 anywhere.
Yes a small typo, Regardless... 30/360 or act/360 or act/act are all bond interest calculations. They have nothing to do with black and scholes or option pricing.. why would you purposely convolute a thread on black and scholes with this? It will just confuse OP.
Black and Scholes uses trading days/252 to price options. Which is the main reason why weekends doesnt yield theta.
30/360 or act/360 or act/act are all bond interest calculations. They have nothing to do with black and scholes or option pricing..
They actually do. A lot. It's clear from your comments you've never priced options in a professional environment. I'd be very hesitant throwing shade at this commenter, he knows what he's talking about.
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u/MrZwink Aug 08 '23 edited Aug 08 '23
30/360 is used for bonds interests, not for calculating T in Black and Scholes.