1
Q
log normal distributio
A
start from 0.
probability dis to asset pricing
skewed to the right
1
Q
A
2
Q
value of return on asset
A
continuosly compounding
ST = S0e^Tr
we assume that returns are independent and do not change
3
Q
volatility (annualized)
A
zmienność,
annualized standard dev of continuously compounded daily returns of the asset
- compound continuously daily rate of return
- then variance an then standard dev
- stand dev*pierw(T)
t- liczba okresów w roku
4
Q
resample
A
repeatedly draw sample from the original sample
5
Q
bootstrap method
A
6
Q
A
