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seen Jun 1 '13 at 6:29

Jul
8
awarded  Yearling
Jul
8
awarded  Teacher
Jul
8
answered How do I estimate the joint probability of stock B moving, if stock A moves?
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8
awarded  Student
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8
awarded  Scholar
Jul
8
accepted QuantLib and exact numerical simulation
Jul
8
comment Formal proof for risk-neutral pricing formula
The price to set up a dynamic hedge portfolio absolutely depends on the dynamics of the asset's price process through the quadratic variance. If you change your assumption about the dynamics of the price process, say by using a jump-diffusion or variance gamma process instead of geometric Brownian motion, you change the value of the option.
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8
awarded  Supporter
Jul
8
asked QuantLib and exact numerical simulation