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I don't mean to imply that stock prices are perfectly normal/lognormal/insert your favorite distro here. Nor do I mean to imply that future price action will ma
by retube 14y ago
I don't mean to imply that stock prices are perfectly normal/lognormal/insert your favorite distro here. Nor do I mean to imply that future price action will match past price. It's just a simple model to illustrate that compared to historical price action you'd need a pretty big 2 day move for the stock to hit $17.
How would you evaluate the risk/reward profile of this option?