Abstract
In this chapter we discuss various methods of presenting risk-neutral probabilities extracted from option prices. Most common are graphical displays of the risk-neutral probability density function or of the cumulative distribution function. In many cases the information in the risk-neutral density function is also summarized by computing selected distributional statistics.
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© 2003 Springer-Verlag Berlin Heidelberg
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Mandler, M. (2003). Presenting and Interpreting Risk-Neutral Probabilities. In: Market Expectations and Option Prices. Contributions to Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-57428-3_4
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DOI: https://doi.org/10.1007/978-3-642-57428-3_4
Publisher Name: Physica, Heidelberg
Print ISBN: 978-3-7908-0049-4
Online ISBN: 978-3-642-57428-3
eBook Packages: Springer Book Archive