Risk Neutral Valuation: There Are at Least Two Expected Values
Thursday, November 13th, 2008But You’ll Never Know the One
We also have a newer post, Price Implied Default Rates, that provides an example more like a risky bond, and this one: Multi-period Bond Price Implied Default Rates and CDS. And we’ll have more related posts soon.
We’ve noticed that our few posts on risk neutral probabilities and implied default probabilities have been among our most […]
