# Tag Info

The dynamics of the underlying stock process are obviously crucial to the derivative's price. Thus if you don't necessarily assume $S_t$ to be log normally distributed (B&S-Model) you won't get the same price even if the market is arbitrage free. Example: Assume $S_t=C$ $\forall t \in \mathbb{R}^+$ and $r=0$. Thus $S_t$ is constant and the interest ...