New answers tagged distribution
0
votes
Accepted
Risk-neutral option pricing under distribution assumption
After reviewing further literature, I have come to the conclusion that indeed this method gives the correct answer. This thought process can be used to derive BS-formula, given the (risk-neutral) ...
Top 50 recent answers are included
Related Tags
distribution × 158probability × 23
returns × 17
programming × 15
statistics × 15
monte-carlo × 12
implied-volatility × 11
value-at-risk × 11
options × 10
normal-distribution × 10
option-pricing × 9
volatility × 9
risk × 9
estimation × 9
simulations × 8
copula × 8
asset-returns × 8
portfolio-optimization × 7
lognormal × 7
brownian-motion × 6
garch × 6
modeling × 6
log-returns × 6
random-variables × 6
stochastic-processes × 5