Skip to main content
Search type Search syntax
Tags [tag]
Exact "words here"
Author user:1234
user:me (yours)
Score score:3 (3+)
score:0 (none)
Answers answers:3 (3+)
answers:0 (none)
isaccepted:yes
hasaccepted:no
inquestion:1234
Views views:250
Code code:"if (foo != bar)"
Sections title:apples
body:"apples oranges"
URL url:"*.example.com"
Saves in:saves
Status closed:yes
duplicate:no
migrated:no
wiki:no
Types is:question
is:answer
Exclude -[tag]
-apples
For more details on advanced search visit our help page
Results tagged with
Search options not deleted user 13610

A contract that gives the owner the right, but not the obligation, to buy or sell a security at a fixed price in the future.

0 votes

Why don't real-world probabilities affect the price of a call in a 1-step binomial model?

To use this method of valuing options, we assume risk neutral probability for calculating expectation of payoff and discount it with the risk free rate to arrive at the final value. …
compilation-error's user avatar
-1 votes

delta hedging strategy for OTM option

Delta hedging implies, loosely speaking, buying a proportion (delta) such that small movements in underlying have no net impact. What you have done with 100% and 0% is, in effect, bought the shares to …
compilation-error's user avatar