Risk-Neutral Valuation and Power Contracts Equation Formula Latex Code and Summary

Risk-Neutral Valuation and Power Contracts

Tags: #Financial #Economics

Equation

$$\frac{\mathrm{d}S(t)}{S(t)} = (r - \delta) \mathrm{d}t + \sigma \mathrm{d} \tilt{Z}(t) \\ \tilt{Z}(t) = Z(t) + \phi t \\ V(S(t), t) = e^{-r(T-t)} E^{*}[V(S(T), T) | S(T)] \\ F^{p}_{t, T}(S^{a}) = S^{a}(t) e ^{ (-r + a(r-\delta) + \frac{1}{2} a(a-1)\sigma^{2})(T-t)}$$

Latex Code

                                 \frac{\mathrm{d}S(t)}{S(t)} = (r - \delta) \mathrm{d}t + \sigma \mathrm{d} \tilt{Z}(t) \\
            \tilt{Z}(t) = Z(t) + \phi t \\
            V(S(t), t) = e^{-r(T-t)} E^{*}[V(S(T), T) | S(T)] \\
            F^{p}_{t, T}(S^{a}) = S^{a}(t) e ^{ (-r + a(r-\delta) + \frac{1}{2} a(a-1)\sigma^{2})(T-t)}

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Introduction

Equation

$\frac{\mathrm{d}S(t)}{S(t)} = (r - \delta) \mathrm{d}t + \sigma \mathrm{d} \tilt{Z}(t) \\ \tilt{Z}(t) = Z(t) + \phi t \\ V(S(t), t) = e^{-r(T-t)} E^{*}[V(S(T), T) | S(T)] \\ F^{p}_{t, T}(S^{a}) = S^{a}(t) e ^{ (-r + a(r-\delta) + \frac{1}{2} a(a-1)\sigma^{2})(T-t)}$

Latex Code

            \frac{\mathrm{d}S(t)}{S(t)} = (r - \delta) \mathrm{d}t + \sigma \mathrm{d} \tilt{Z}(t) \\
            \tilt{Z}(t) = Z(t) + \phi t \\
            V(S(t), t) = e^{-r(T-t)} E^{*}[V(S(T), T) | S(T)] \\
            F^{p}_{t, T}(S^{a}) = S^{a}(t) e ^{ (-r + a(r-\delta) + \frac{1}{2} a(a-1)\sigma^{2})(T-t)}

Explanation

Latex code for Risk-Neutral Valuation and Power Contracts.

$S^{a}(T)$ : Payoff a power contract at time T
$F^{p}_{t, T}(S^{a})$ : Price of the power contract
$V(S(t), t) = e^{-r(T-t)} E^{*}[V(S(T), T) | S(T)]$ : Risk-neutral equations

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Denise Richardson

All I'm asking for is to pass this test!

2023-06-08 00:00
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Margaret Thomas reply to Denise Richardson

Nice~

2023-07-06 00:00:00.0
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Christina Murphy

A pass in this test is all I need to move forward.

2023-01-27 00:00
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Elizabeth Jones reply to Christina Murphy

Nice~

2023-02-21 00:00:00.0
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Jane Howard

If I could have one wish, it would be to pass this exam.

2024-01-22 00:00
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Julie Wright reply to Jane Howard

Nice~

2024-02-12 00:00:00.0
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