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Option Valuation: Price Drift and Randomness
Updated Jul 27, 2024
What you'll learn
- We discuss the long-term grown rate in the price of an asset and the evolution of the future price of an asset
Course Description
Drift refers to the long-term grown rate in the price of an asset, and randomness refers to the random element of the future price of the asset. The evolution of the future price of an asset consists of a drift component and a random component, and we discuss both here.
