If a derivative cannot be hedged, can we still price it?

wheres36 发表于 2013-8-9 22:46
Touché man, touché. Stuff like weather derivatives are just way to crazy, they don't even use Bl ...

Actually in Hull's book, he uses black scholes ! Nothing to say. So they just need a price to trade. It's just a number. So just ignore this crazy stuff :-)

Chemist_MZ 发表于 2013-8-9 22:52
Actually in Hull's book, he uses black scholes ! Nothing to say. So they just need a price to trad ...

Interesting to know。 TNX