Posts Tagged ‘ basket option ’

Basket Option Pricing: Step by Step

May 8, 2010
Basket Option Pricing: Step by Step

I find options fascinating because they deal with the abstract ideas of volatility and correlation, both of which are unobservable and can often seem like wild animal spirits (take the current stock market as an example). Understanding these subtle concepts is never easy, but it is essential in pricing some of the more exotic

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