Search results with tag "Arbitrage pricing"
Options: Valuation and (No) Arbitrage
people.stern.nyu.eduFoundations of Finance: Options: Valuation and (No) Arbitrage 4 III. No Arbitrage Pricing Bound The general approach to option pricing is first to assume that prices do not provide arbitrage opportunities. Then, the derivation of the option prices (or pricing bounds) is obtained by replicating the payoffs provided by the option using
Mathematics for Finance: An Introduction to Financial ...
poincare.matf.bg.ac.rsries lead in different directions: Black–Scholes arbitrage pricing of options and other derivative securities on the one hand, and Markowitz portfolio optimisa-tion and the Capital Asset Pricing Model on the other hand. Models based on the principle of no arbitrage can also be developed to study interest rates and their term structure.
FIN520 Financial Economics I Module 3, 2021-2022
statics.phbs.pku.edu.cnmarket equilibrium and asset valuation, arbitrage pricing theory, and general equilibrium asset pricing model in a static setting (i.e. a two-period model), and the potential applications of these themes. As a preview for the next course Financial Economics II, it is a continuation of Part I, and