Is Stock Price Discrete Or Continuous

Is Stock Price Discrete Or Continuous Yes and no Clearly stock prices or prices of any asset are not observed continuously This applies to both the value price dimension and the time dimension

Probability distributions are characterized as either discrete or continuous and as working as either a probability density function or a cumulative distribution In finance some variables such as price change of a stock or the returns earned by an investor are considered to be continuous even though they are actually discrete because the number of possible outcomes is large

Is Stock Price Discrete Or Continuous

Is Stock Price Discrete Or Continuous
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Discrete Vs Continuous Data Differences Examples Statistics By Jim
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Continuous Data
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Discrete data can be numeric like numbers of apples but it can also be categorical like red or blue or male or female or good or bad Continuous data are not restricted to The first sentence in the abstract explains it By the end of January 2001 all NYSE stocks had converted their price quotations from 1 8s and 1 16s to decimals

The dynamical behavior of stock prices is in general based on the following assumptions Continuity of trading which means that price quotations have a nonzero interval between them The prices evolve as In this chapter we derive a continuous variable continuous time stochastic process for stock prices An understanding of this process is the first step to understanding the

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A random variable that can take only a certain specified set of individual possible values for example the positive integers 1 2 3 For example stock prices are discrete In an introductory stats class one of the first things you ll learn is the difference between discrete vs continuous variables Discrete variables are countable distinct values such as number of letters in a word or

Can one argue that discrete time series coming from stocks or commodities prices are derived from a continuous time process I would say no In praxis you often find rates being used in a discrete setting whereas academics and model developers tend to prefer continuous time setting The former is

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Stock Price Value As A Continuous time Stochastic Process

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Yes and no Clearly stock prices or prices of any asset are not observed continuously This applies to both the value price dimension and the time dimension

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Using Common Stock Probability Distribution Methods

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Probability distributions are characterized as either discrete or continuous and as working as either a probability density function or a cumulative distribution

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Is Stock Price Discrete Or Continuous - The dynamical behavior of stock prices is in general based on the following assumptions Continuity of trading which means that price quotations have a nonzero interval between them The prices evolve as