2 ms·
In the end the value is just discounted dividends or there's an arbitrage opportunity under the risk neutral measure. This isn't a matter of rules of thumb. Th
by impossiblefork 11mo ago
In the end the value is just discounted dividends or there's an arbitrage opportunity under the risk neutral measure.
This isn't a matter of rules of thumb. This is what's required to have prices that do not create an arbitrage opportunity.