1. Construct a MATLAB function for the estimation of the parameters of a Black-Scholes model with representation...

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1. Construct a MATLAB function for the estimation of the parameters of a Black-Scholes model with representation (2.4). The input values are a n × d matrix S representing the prices of the assets over time, and the scaling parameter h, representing the time between observations, on an annual time scale. The number of assets must be determined from the data S. The output values are the estimation of the parameters μ

and v on an annual basis, together with their estimation errors and the estimation of the covariance matrix V .

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