Question
What is the difference between the Black Scholes formula, and the Black Scholes equation? Hint; the the Black Scholes equation is a PDE. Give examples
What is the difference between the Black Scholes formula, and the Black Scholes equation? Hint; the the Black Scholes equation is a PDE.
Give examples of options which are path dependent, and other option prices which only depend on the price of the underlying at expiration.. Give examples of option prices which require a multivariate normal distribution.
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
6th Edition
003025809X, 978-3540014386
