derivatives values are based on risk-neutral prcing

in #derivitives • 2 years ago

Two assets with uncertain returns can be combined in a portfolio that will have a certain payoff.
If a portfolio has a certain payoff, the porfolio should yield the risk-free rate.
For this reason, derivatives values are based on risk-neutral prcing

#riskfreerate #payoff #riskneutral #steem #steemit #cfa
2 years ago in #derivitives by
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     2 years ago 

    Upvoted! Thank you for supporting witness @jswit.

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