Suppose an option pays the maximum value of spot minus the
Suppose an option pays the maximum value of spot minus the minimum value of spot across a number of dates. Discuss how to price this option using PDEs and Monte Carlo.
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let st btnbspbe as in the black-scholes model with st non-dividend paying an option p allows the holder to sell the
suppose an option pays the maximum value of spot minus the minimum value of spot across a number of dates discuss how
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discuss how a geometric mean asian option would be priced by the auxiliary variable method and by monte carlo the
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