Option Valuation: Price Drift and Randomness
Interactive

Option Valuation: Price Drift and Randomness

Intuition Publishing Pty Ltd
Updated Sep 24, 2020

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.

;