6 LIST OF FIGURES
5.2 A standardized density histogram of daily close-to-close re-
turns on the Pepsi Bottling Group, symbol NYSE:PBG, from
September 16, 2003 to September 15, 2003, up to September
13, 2006 to September 12, 2006................. 165
6.1 The p.d.f. for a lognormal random variable........... 209
7.1 Value of the call option at maturity............... 232
7.2 Value of the call option at various times............ 233
7.3 Value surface from the Black-Scholes formula.......... 234
7.4 Value of the put option at maturity............... 241
7.5 Value of the put option at various times............ 242
7.6 Value surface from the put-call parity formula......... 243
7.7 Value of the call option at various times............ 258
7.8 The red distribution has more probability near the mean, and
a fatter tail (not visible)..................... 268
