Monday, March 23, 2009
Bachelier vs. Black
Black and Scholes gives a strange result for the price of a binary option under high volatility. You will learn here how to simulate a stock price evolution using Java, and how to show it using JFreeChart library. It starts with more complex concepts (don't be afraid) and goes done towards simpler things.
I could not write all that in a blog format, so I created a old HTML page about it here and a PDF version.
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