Risk-neutral pricing and the delta-hedging ratio
1st Apr 2024 by Aneesh Mistry

Risk-neutral pricing and the delta-hedging ratio

In this video, we will walk through pages 4 to 8 of Steven Shreve's Stochastic calculus for finance part 1 where we develop the risk-neutral pricing formula and delta hedging ratio for a one-period binomial model.

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