Beating the Stock Market

The video tutorial explains options trading, focusing on the Black-Scholes model developed in 1973. It highlights how this model revolutionized the market by providing a method to price options accurately, leading to significant financial gains. However, it also discusses the limitations of such models during unpredictable market events, which can lead to substantial losses.

What was the outcome of the risky strategy employed by Scholes and Merton?

What lesson can be learned from the market's behavior as described in the text?