Lecture_6Basic No Arbitrage Restrictions on Options Prices(衍生金融工具人民银行研究院,何佳)概要1.ppt

Lecture # 6: Basic No Arbitrage Restrictions on Options Prices Some Option Contracts in Hong Kong ·??????? Introduction Exact pricing formulas for options are more difficult to derive than formulas for forwards and futures. To arrive at a pricing formula for stock options, which we will do in a few lectures, we need to make assumptions on the dynamic behavior of the prices of the underlying stock. In what follows will derive some general restrictions on stock option price without assuming a dynamic model for stock price movement. The main purpose of doing that is to improve our understandin