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Search results with tag "Option pricing theory"
CHAPTER 5 OPTION PRICING THEORY AND MODELS
people.stern.nyu.eduOPTION PRICING THEORY AND MODELS In general, the value of any asset is the present value of the expected cash flows on that asset. In this section, we will consider an exception to that rule when we will look at assets with two specific characteristics: • They derive their value from the values of other assets.