Frequently Asked Questions In Quantitative Finance

Chapter 2: FAQs 193

models to price an exotic contract how do you know

which price to use? How do you know which gives the

better hedge ratios? How will you even know whether

you have made money or lost it?

References and Further Reading

Schoutens, W, Simons, E & Tistaert, J 2004 A perfect calibra-

tion! Now what?Wilmottmagazine March 66–78