Memorize Black-Scholes-Merton Formula?

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ProvidenceCFA

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Hey All,
Are any of you comitting the BSM formula to memory and understanding how to calculate it? According to the LOS, all we are expected to know are how the inputs change according to increase/decrease in 5 inputs…not how to calculate the formula
 
S2000magician wrote:
Only masochists would commit those formulae to memory.
Click to expand...
LOL…
But seriously, should this formula and the awful Black Model be memorized? Any liklihood of this being tested considering its not stated in the LOS?
 
It is interesting that the LOS doesnt have anything to do with calculation, but there is a BB example where you have to explicitly calculate the price of a European call and put using the BS formula (pg 194-195 example #8).
 
It is interesting that the LOS doesnt have anything to do with calculation, but there is a BB example where you have to explicitly calculate the price of a European call and put using the BS formula (pg 194-195 example #8).
 
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