Chapter 3: American options and early exercise - PowerPoint PPT Presentation

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Chapter 3: American options and early exercise

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Chapter 3: American options and early exercise Two questions: (1) option price (2) what s the optimal exercise policy Probabilistic approach BTM For European ... – PowerPoint PPT presentation

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Title: Chapter 3: American options and early exercise


1
Chapter 3 American options and early exercise
  • Two questions
  • (1) option price
  • (2) what
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