Question
In the framework of the Black-Scholes model of option pricing, one generally assumes that there are no riskless arbitrage opportunities. Discuss how the assumption of
In the framework of the Black-Scholes model of option pricing, one generally assumes that there are no riskless arbitrage opportunities. Discuss how the assumption of the absence of riskless arbitrage opportunities is used in the derivation of the Black-Scholes equation.
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Cost Management Accounting and Control
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
6th Edition
978-0324559675
