7) The Black-Scholes analysis Flashcards
(4 cards)
1
Q
How can you convert a stochastic process into a deterministic one when deriving the Black-Scholes PDE
A
2
Q
What are the key assumptions of the Black-Scholes model
A
3
Q
A
4
Q
How do you construct a risk-free portfolio in a market with two risky assets
A
