Why are the probabilities of stock price movements not used in the model for calculating an option's

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Why are the probabilities of stock price movements not used in the model for calculating an option's price? What variables are used?

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Introduction To Derivatives And Risk Management

ISBN: 9781305104969

10th Edition

Authors: Don M. Chance, Robert Brooks

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Question Posted: Apr 07, 2016 08:32 AM

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Why are the probabilities of stock price movements not used in the model for calculating an option's

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Introduction To Derivatives And Risk Management

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