network profile
| bio | website | |
|---|---|---|
| location | ||
| age | ||
| visits | member for | 1 year, 11 months |
| seen | Aug 3 '12 at 12:35 | |
| stats | profile views | 65 |
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Jan 5 |
comment |
Why a self-financing replicating portfolio should always exist? thank you for the answer. My problem is not in the assumptions but in the logic which combines these assumptions to obtain the Black-Scholes PDE. It is OK for me to assume that the stock prices is given by the diffusion process (equation 2) and that the bond is deterministic (i.e. not stochastic). I also can accept the fact that it is always possible to construct a self-financing replicating portfolio. what is not clear is why all that restricts the price of the options (as function of S and t). |
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Jun 20 |
comment |
How stressful is work of quants? @Terco, why do you think people will not be willing to give information? Of course, I do not expect to get names of companies, bosses names and so on. I just want to know how is it to work in finance (because I only have experience of work in science). |
