Recent content by Josu

As a part of the other readers, I'm not interested at all in Andy answering your questions, but in you answering hims, which was the aim of this topic. And I hope you don't ask any of us another questions about, let's say, Galois theory.

Ok, I understand what you say. It all has to do with the dynamic model used for the underlying in the B-S model; the geometric Brownian motion. dS(t)=r*S(t)dt+s*S(t)*dW(t), where s is the volatility, and r the interest rate. That's the stock dynamic SDE used in the Black-Scholes model, under...

Lun, in this case is not the same logic. For the put, a 0 spot price in the underlying is going to be 0 all the time. However, in the case of the call option, you can't say "let's keep S=2K"; you don't know that when you purchase a call option with S=2K initially. The price will fluctuate for...

Hi Lun. Let's see. If the spot price is 0, then it will be always 0 (think of when it does happen spot price =0 ) so the payoff at maturity T of the option will always be K (strike). Now, as the cash flow at maturity is known, the value of the option is just the present value of K, let's say...

Thanks for the answers. Well, I'm doing all the exercises I find most challenging from each chapter, those in which you have to combine everything you know, not just the theory of the chapter itself. I agree with Alexei regarding how slow programming books could seem sometimes, so I think I'll...

Hi people. I need some suggestions/guidance regarding C++.Well, first of all, I'd like to write a couple of lines about my background and my current situation: I studied math in Spain ( 5 years of uni in Spain, more years than other countries ) and right after that I worked for an english bank...

sure, that would b very great. do u have it?

Hi everybody... Have some question I've been wondering to know for some days regarding the basic risk neutral valuation method, under which a price of a derivative is obtained via the well known discounted value of the Risk neutral expected payoff at mat. I've understood where do this result...

Thanks Bob!! Very clarifying... understood now!

Hi guys.... first of all, apologizes if my english is not very good, I'm not a native speaker so it's not easy for me to express ideas but I'll try... well, I've been studying quant finances for the last 3 months, on my own, with just the classic Hull book. I've been reading about the Black...