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 .
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“In everyone’s youthful dreams, philosophy is still vaguely but inseparably, and with singular truth, associated with the East, nor do after years discover its local habitation in the Western world. In comparison with the philosophers of the East, we may say that modern Europe has yet given birth to none.”
—Henry David Thoreau (1817–1862)
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