Exam Notes Flashcards
1
Q
Compute the risk neutral branching probability
A
2
Q
When integrating to compute call option price remember
A
And split up integral using A = log(k/s0) as lower bound
And z’ becomes (z - (m+s)2)/s
3
Q
When calculating moments of W, let Wt
A
4
Q
Showing something is(n’t) a martingale
A
Show wether next value is equal to current value
