Introduction to Market Risk Measures and Option Pricing

Let \(X= V_T - V_0\) be a rv describing the profits or losses (P&L) of a single asset or portfolio, with future traded value \(V_T\) and initial value \(V_0\) . For a single asset \(V_t=S_t\) for \(t=0,T\) and the actual rv is \(S_T\) , e.g. a future stock price.