Hedging cost in dynamic delta hedging equal the option price

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Reference no: EM131934188

1. This needs to be entered into a tax form with the information given to receive the answers. Does anyone have the extra time to spend to enter the data and come up with the answers? If not, I will try to update with answers within the next couple of days.

2. Why and how does the price of an option computed through a geometric brownian motion simulation converge to that calculated from the Black Scholes model?

3. Delta Hedging

Why does the hedging cost in Dynamic Delta Hedging equal the option price?

Reference no: EM131934188

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