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SRKX
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Dealing with How to use the stock as a numeraire to price a derivative with payoff of the form $(S_T f(S_T))^+$?

I don't understand how to express the stock dynamics in the stock numéraire

I have $dS_t/S_t = rdt + \sigma dW_t$$\frac{dS_t}{S_t} = rdt + \sigma dW_t$ as usual under the money-market numéraire and I need to price options with payoffs

$$S_T f(S_T)$$$$(S_T f(S_T))^+$$

How do I don't getexpress the stock dynamics using the stock as numéraire, and how todo I get the stock distribution withunder the new numéraire

Thanks a lotequivalent measure.

Dealing with the stock numeraire

I don't understand how to express the stock dynamics in the stock numéraire

I have $dS_t/S_t = rdt + \sigma dW_t$ as usual under the money-market numéraire and I need to price options with payoffs

$$S_T f(S_T)$$

I don't get how to get the stock distribution with the new numéraire

Thanks a lot

How to use the stock as a numeraire to price a derivative with payoff of the form $(S_T f(S_T))^+$?

I have $\frac{dS_t}{S_t} = rdt + \sigma dW_t$ as usual under the money-market numéraire and I need to price options with payoffs

$$(S_T f(S_T))^+$$

How do I express the stock dynamics using the stock as numéraire, and how do I get the stock distribution under the equivalent measure.

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jojo
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Dealing with the stock numeraire

I don't understand how to express the stock dynamics in the stock numéraire

I have $dS_t/S_t = rdt + \sigma dW_t$ as usual under the money-market numéraire and I need to price options with payoffs

$$S_T f(S_T)$$

I don't get how to get the stock distribution with the new numéraire

Thanks a lot