Option traders use a heuristically derived pricing formula which they adapt by fudging and changing the tails and skewness by varying one parameter, the standard deviation of a Gaussian. Such formula is popularly called "Black-Scholes-Merton" owing to an attributed eponymous discovery (though...

Sample measures of top centile contributions to the total (concentration) are downward biased, unstable estimators, extremely sensitive to both sample and population size and concave in accounting for large deviations. It makes them particularly unfit in domains with power law tails, especially...