Derivitives Pricing Model

in #dirivitives • 2 years ago

Derivitives Pricing Models use the risk-free rate to discount future cash flows becuase thse models:
are based on portfolios wit hcertain payoffs

They are based on arbitrage relationships that are theoretically riskless.

#pricing #model #risk #free #discount #payoffs
2 years ago in #dirivitives by
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     2 years ago 

    Upvoted! Thank you for supporting witness @jswit.

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