Harashima Senju
Ton up Member
Are the following results true
- In a real world we have: \(ln\frac{S_t}{S_s} \sim N( \mu(t-s), \sigma^2(t-s))\)
- In a real neutral world : \(ln\frac{S_t}{S_s} \sim N( (r-0.5\sigma^2)(t-s), \sigma^2(t-s))\)