Pricing in Discrete Financial Models

Mnacho Echenim 🌐

July 16, 2018

Abstract

We have formalized the computation of fair prices for derivative products in discrete financial models. As an application, we derive a way to compute fair prices of derivative products in the Cox-Ross-Rubinstein model of a financial market, thus completing the work that was presented in this paper.
BSD License

Topics

Theories of DiscretePricing