On: Stock Option Pricing Inference

[tcgv]

I took the natural logarithm of the stock's daily returns. Then when estimating option prices I performed the reverse operation:

> exp(1) ^ dist[["x"]]

In this link you can find more information: - https://www.google.com/amp/s/quantivity.wordpress.com/2011/0...

[alimw → tcgv]

OK well that is not commonly called "log normalization". It is called "using log returns".

[tcgv → alimw]

Fixed that, thanks! (should take effect in a while)