Derivative Pricing

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August 31, 2024 4 min read Definitions
Lattice Models: A Discrete Grid Approach to Derivative Pricing
Finance Mathematics Investments Derivatives Risk Management Lattice Models Derivative Pricing Financial Mathematics Binomial Model Trinomial Model
Explore lattice models, a crucial method in financial mathematics for pricing derivatives using a discrete grid approach. Understand their history, types, key events, detailed methodologies, formulas, and importance.
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August 24, 2024 3 min read Definitions
Hull-White Model: Pricing Derivatives with Mean-Reverting Short Rates
Finance Economics Hull-White Model Derivative Pricing Mean Reversion Financial Models Short Rates
An in-depth look at the Hull-White Model, a vital tool for pricing derivatives. This model assumes normally distributed short rates that revert to the mean, providing a robust framework for financial analysis.
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August 24, 2024 4 min read Definitions
Risk-Neutral Measures: Definition, Functionality, and Application in Asset Pricing
Finance Economics Risk-Neutral Measures Asset Pricing Financial Models Arbitrage-Free Pricing Derivative Pricing
A comprehensive guide to understanding risk-neutral measures, their function in financial markets, and their application in asset pricing models.
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