Risk Neutrality

[pardasani]

Hi all... I did a small write up 'on risk neutrality and pricing of derivatives'.... kind of explains what risk neutral is (according to me) and why its okay to replace mu by r, when we price derivative securities...

please let me know if you any comments/ questions/ feedback

sp

 

[Andy Nguyen]

Nice write up, SP.
If you ok the idea, we can publish this as an article on Quantnet.
When available, you should write some more articles. Something like comparing bi/trinomial tree methods, etc

I'm interested in seeing some pieces like that.

 

[pardasani]

If you ok the idea, we can publish this as an article on Quantnet..

Sure andy -- an article on quantnet sounds like a really cool thing !!.... If i write something, I will definitely put it up here...