A Probability Model of Risk Pricing

Li-jiang ZENG, Zhang-yi GONG

Abstract


Risk pricing is the basic content of the economics, but also the important content, the price of a product stock, if no use mathematical tools to estimate and statistical investigation, blind pricing will losses to the enterprise, or causes losses to shareholders, so do stock prices, these are all we don't want to see. This article starting from the basic knowledge of probability and statistics in mathematics, to establish the concept of probability space on the sample space, thus the mathematical model of risk pricing is given, finally the risk-neutral probabilities calculation method is given.

Keywords


Probabilities, Risk pricing, Conditional expectations, Risk-neutral


DOI
10.12783/dtssehs/iceme2019/29589

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