Documents Lecture 8 With Lecture Notes

Investing Choices and Risk Measures (Welch, Chapter 08) Oleg Shibanov New Economic School February, 2014 Did you bring your calculator? Did you read the chapter ahead of…

Documents 1 16-Option Valuation. 2 Pricing Options Simple example of no arbitrage pricing: Stock with known...

Slide 1 1 16-Option Valuation Slide 2 2 Pricing Options Simple example of no arbitrage pricing: Stock with known price: S 0 =$3 Consider a derivative contract on S: Payoff…