Local Volatility

A local volatility model, in mathematical finance and financial engineering, is one which treats volatility as a function of the current asset level and of time .

Read more about Local Volatility:  Formulation, Development, Use

Famous quotes containing the word local:

    [Urging the national government] to eradicate local prejudices and mistaken rivalships to consolidate the affairs of the states into one harmonious interest.
    James Madison (1751–1836)