📚 Learning how derivatives are priced will make you realize that all the models are based on financing with an interest rate (IR). Future value of a derivative is discounted with an IR.
Illya Gerasymchuk
📚 Learning how derivatives are priced will make you realize that all the models are based on financing with an interest rate (IR). Future value of a derivative is discounted with an IR.
Where does this extra money come from?
🔎 Hint:
you may see it manifest as #inflation 😉
