Category: Stocks

18
Jan

Probability of Touch

I was looking for a mathematical formula for the probability of a stock price touching a strike price of an option any time during it’s lifetime, assuming the stock price follows a traditional Black-Scholes model of Brownian Motion. I found some traction from from http://quant.stackexchange.com/questions/235/probability-of-touching, but unfortunately the equation did not seem to work according […]