Advertisement

Presenting and Interpreting Risk-Neutral Probabilities

  • Martin Mandler
Chapter
  • 130 Downloads
Part of the Contributions to Economics book series (CE)

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.

Keywords

Option Price Market Participant Risk Preference Future Price Strike Price 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Springer-Verlag Berlin Heidelberg 2003

Authors and Affiliations

  • Martin Mandler
    • 1
  1. 1.Department of Economics and Business AdministrationUniversity of GießenGießenGermany

Personalised recommendations