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Why Option prices sometimes deviate significantly from Black-Scholes model?

Black-Scholes-Merton model uses Volatility, Stock price, Strike price, Time to expiration, and Risk-Free rate as a predictor for Option pricing.

I feel that Zoom is overvalued as hell. It is a stupid Video calling software with a market cap of $75 Billion. Earnings are going to make this stock go drop down to Earth's core.

When using the following parameters: Volatility: 50%, Stock price: 250, Strike price: 245, Time to expiration: 8 days, and Risk-Free rate: 2%, I should be paying only $5.86 for my Zoom Puts, but I am paying almost double instead $11 bucks on last Friday.

So, why is there a discrepancy in the pricing here? As per our founding father Apes, Fischer Black, Robert Merton, and Myron Scholes and their wonderful formula, the price should have been half of what we are paying.

submitted by /u/flying_cofin
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