RiskNeutral Valuation and Power Contracts
Tags: #Financial #EconomicsEquation
$$\frac{\mathrm{d}S(t)}{S(t)} = (r  \delta) \mathrm{d}t + \sigma \mathrm{d} \tilt{Z}(t) \\ \tilt{Z}(t) = Z(t) + \phi t \\ V(S(t), t) = e^{r(Tt)} E^{*}[V(S(T), T)  S(T)] \\ F^{p}_{t, T}(S^{a}) = S^{a}(t) e ^{ (r + a(r\delta) + \frac{1}{2} a(a1)\sigma^{2})(Tt)}$$Latex Code
\frac{\mathrm{d}S(t)}{S(t)} = (r  \delta) \mathrm{d}t + \sigma \mathrm{d} \tilt{Z}(t) \\ \tilt{Z}(t) = Z(t) + \phi t \\ V(S(t), t) = e^{r(Tt)} E^{*}[V(S(T), T)  S(T)] \\ F^{p}_{t, T}(S^{a}) = S^{a}(t) e ^{ (r + a(r\delta) + \frac{1}{2} a(a1)\sigma^{2})(Tt)}
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Introduction
Equation
Latex Code
\frac{\mathrm{d}S(t)}{S(t)} = (r  \delta) \mathrm{d}t + \sigma \mathrm{d} \tilt{Z}(t) \\ \tilt{Z}(t) = Z(t) + \phi t \\ V(S(t), t) = e^{r(Tt)} E^{*}[V(S(T), T)  S(T)] \\ F^{p}_{t, T}(S^{a}) = S^{a}(t) e ^{ (r + a(r\delta) + \frac{1}{2} a(a1)\sigma^{2})(Tt)}
Explanation
Latex code for RiskNeutral Valuation and Power Contracts.
 : Payoff a power contract at time T
 : Price of the power contract
 : Riskneutral equations
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