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Talk:Constant elasticity of variance model

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This is an old revision of this page, as edited by Sphilbrick (talk | contribs) at 14:18, 6 August 2016 (confusion). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.
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I believe this article is confused about leverage. The general use of the term leverage in finance refers to the use of debt in acquiring a position in a security. The use of leverage will increase the volatility of the price relative to the equity position, but this article suggests that leverage is a relationship between the volatility the stock and the level of the price. The description in this article appears to accurately reflect the parameter gamma, but I don't believe it is the term "leverage" is generally used in finance.--S Philbrick(Talk) 14:18, 6 August 2016 (UTC)[reply]

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