Probability in Finance - III: Mathematics of the Dupire Local Volatility Model

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Abstract

This note lays out the necessary background and essential mathematics for understanding the Dupire Local Volatility model in derivatives pricing.

Additional Information

Product Type Technical Note
Reference No. F&A0524TEC
Title Probability in Finance - III: Mathematics of the Dupire Local Volatility Model
Pages 16
Published on Jul 6, 2015
Authors Virmani; Vineet;
Area Finance and Accounting (F&A)
Discipline Finance
Keywords Derivatives Pricing; Stochastic Colatility; Kolmogorov Equations; Dupire Local Volatility Model
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