Denouement: The Theory after the Two Narratives
Einstein once built a theory by postulating that the speed of light was the same in all frames of reference. I propose to build a theory of the market in which the price of the underlying, and the price of the derivative, although numerically different, are of the same nature.
KeywordsBrownian Motion Stochastic Volatility Implied Volatility Price Process Contingent Claim
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