Revolutionizing Risk Management: Unveiling the Secrets of Financial Derivatives Pricing
The article covers various financial derivatives like forward contracts, futures, swaps, and options. It discusses pricing methods, trading strategies, and risk management techniques. The researchers explore the Black-Scholes-Merton option pricing formula and its extensions, as well as empirical evidence on time-varying volatility. They also delve into the pricing and hedging of corporate securities and credit risk.