Given Forward Risk Neutral Dynamics, What Can Be Said of a Forward

question 13

Essay

Given forward risk neutral dynamics, what can be said of a forward price?

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Definitions:

Absolute Threshold

The smallest quantity of a stimulus that an individual can detect.

Difference Threshold

The minimal change in a stimulus that can just barely be detected by an organism.

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time, also known as the "just noticeable difference" (JND).

Energy

The capacity to do work or the power derived from the utilization of physical or chemical resources.