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Why ALib use Growth rate in Option valuation functions?

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seanmok
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Joined: June 6th, 2004, 4:01 am

Why ALib use Growth rate in Option valuation functions?

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January 30th, 2009, 12:43 pm

Hello,Why ALib use Growth rate in Option valuation functions, say OPT_SENS_AMERICAN (trinomial tree model for American option)? is this real world growth rate, like the projected growth in Bloomberg BDVD page? Should this one risk free rate in the risk neutral world?thanks
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