Explain how to compute the BlackScholesMerton model using the pseudo-probabilities. What is this principle called?

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Explain how to compute the Black–Scholes–Merton model using the pseudo-probabilities. What is this principle called?

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An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Question Posted: Dec 02, 2015 03:53 AM

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Explain how to compute the BlackScholesMerton model using the pseudo-probabilities. What is this principle called?

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The BSM model is the discounted expected payoff to the opt...View the full answer

An Introduction to Derivative Securities Financial Markets and Risk Management

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