Strengths and weaknesses of th IVF Model The model matches the probability distribution of stock prices assumed by the market at each future time The models does not necessarily get the joint probability distribution of stock prices at two or more times correct Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 20.11 Strengths and Weaknesses of the IVF Model • The model matches the probability distribution of stock prices assumed by the market at each future time • The models does not necessarily get the joint probability distribution of stock prices at two or more times correct