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Safeer Ahmad on Instagram: "This equation represents a jump-diffusion model in financial mathematics. Unlike the classical Black-Scholes model, which assumes continuous and smooth price movements driven only by Brownian motion, this model incorporates both continuous fluctuations and sudden discontinuous jumps. The first part, involving Brownian motion, captures the normal day-to-day randomness of market prices, where volatility plays the central role. However, real markets are not always smooth
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