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(yet another) question on joint prob dist
hello,suppose I have to correlated assets S1 and S2. If i want to value a claim C(S1_T1, S2_T2, K1, K2, T1,T2) can I separate the joint prob density, i.e. p(S1_T1,S2_T2) = p(S1_T1)*p(S2_T2)?? Note that T1 <> T2, hence my question on whether or not it is possible to separate the joint prob density.thanks
(yet another) question on joint prob dist
if they are correlated then that implies they are not independent which implies that the joint probability distribution can't be written as a product of pdfs of each variables separately.