Search results with tag "Multiperiod"

10b Multiperiod Options - Princeton University

Fin 501:Asset Pricing I Risk‐neutral probabilities • Note that p is the probability that would justify the current stock price S in a rikisk‐neutral world: []quS q dS R S = +(1− ) 1 p u d R d q = − − = • No arbitrage requires u > R > d as claimed before

  University, Princeton, Princeton university, Pricing, Arbitrage, 10b multiperiod, Multiperiod