2 Pricing of Black-Scholes with dividend 2 Discount factor 1 Which book would you recommend for beginners in Quantitative Finance? 1 How to find the mean and variance of this stochastic process? 1 How to understand nonrandom/random process in Shreve book?

### Reputation (377)

 +10 Can I always use quadratic variation to calculate variance? +20 Covariance of logarithms of geometric Brownian motion +10 Discount factor +10 Pricing a call option with pay-off function max{$S_T - S_{T/2}, 0$}

### Questions (5)

 5 Can I always use quadratic variation to calculate variance? 4 Pricing a call option with pay-off function max{$S_T - S_{T/2}, 0$} 3 How to understand nonrandom/random process in Shreve book? [closed] 2 Covariance of logarithms of geometric Brownian motion 2 If S(t) is geometric Brownian motion, what is the distribution of S(t+h)-S(t)?

### Tags (18)

 4 finance-mathematics × 6 2 discounting 2 stochastic-calculus × 6 2 black-scholes 2 stochastic-processes × 6 1 financial-engineering × 2 2 mathematics × 3 1 quantitative 2 discount-factor-curve 1 statistical-finance