A snakes and ladders representation of stock prices and returns

Gager, Philip C. and Shackleton, Mark B. (2011) A snakes and ladders representation of stock prices and returns. Mathematical Gazette, 95 (533). pp. 177-185.

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Official URL: https://ssrn.com/abstract=1500431

Abstract

Snakes and ladders is an ancient Indian game of chance that offers amusement as well as a metaphor for life's many ups and downs. Games offer useful and fun ways of conveying ideas as well as solution techniques and this game has considerable mathematical tractability. This note shows how snakes and ladders can be used to represent the ups and downs of share ownership and solve for fair values of a multistage project that pays fixed dividends at uncertain completion times and has random returns.

Item Type: Article
Journal or Publication Title: Mathematical Gazette
Publisher: The Mathematical Association
ISSN: 0025-5572
Related URL(s):
Departments: Faculty of Education, Arts and Business > Institute of the Arts > Humanities
Depositing User: Anna Lupton
Date Deposited: 11 Jan 2017 09:41
Last Modified: 16 Mar 2017 17:31
URI: http://insight.cumbria.ac.uk/id/eprint/2583

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