Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Price of asset

The price of a financial asset is decided by trading the asset on a market. If the asset is a derivative we can often find relations which the price must fulfill in order to be consistant with prices of other assets on the market. The actual price is however set through supply and demand. In mathematical finance one usually deals with the value of an asset instead. Under some simplifying assumptions one derive what is called the risk neutral valuation formula.

 

Questions: Magnus Wiktorsson
Last update: 2016 Sep 04 16:34:54. Validate: HTML CSS

Top of page
Centre for Mathematical Sciences, Box 118, SE-22100, Lund. Telefon: +46 46-222 00 00 (vx)