A couple of the readers of my “Option Pricing Formulas” book keep sending me e-mails about page 71-73 where I describe Phi/Rho-2. Phi is the option’s sensitivity to change in dividend yield, or foreign interest rate. The question from these naughty readers are concerning the example where they have spotted that the stock price and strike price are Fibonacci numbers, further that the result of calculating Phi is 1.6180. Phi is said to be related or connected to the Golden Ratio 1.6180. From the readers I understand this is considered a sacred or magical number. So is the example a coincident? Do the example have any meaning beside its option sensitivity?
What can I say? A good book should have more than one layer of wisdom ;-) I have to warn you, those seeking the true alchemy of derivatives will easily get lost and never get out of the labyrinth of option pricing formulas. If you not have the knowledge to enter the labyrinth you better not walk in.
Quants do not do Da Vinci Code we do Computer Code, some do VBA, some do C++ and the most Geeky ones do Pure Code ;-) Most quants understand C++ or JAVA, but few of them know ancient code.
