Why does the price of a derivative not depend on the derivative with which you hedge volatility risk?
I'm trying to derive the valuation equation under a general stochastic volatility model. What one can read in the literature is the following reasoning: One considers a replicating self-financing ...
Possible Duplicate: How should I calculate the implied volatility of an American option in a real-time production environment? I am starting a project and would be grateful for some ...