Determine the efficiency of Monte Carlo method
Determine the efficiency of Monte Carlo method.
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If we want an accuracy of ε and we have d underlyings then the calculation time is
O(d ε-3).
This will take longer to price the greeks, however, on the positive side, we can price several options at the same time for approximately no extra time cost.
Alpha and Beta Companies can borrow at the described rates. &nbs
$100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is ________.
Why is volatility annualized standard deviation of return?
Whereas you were visiting London, you purchased a Jaguar for £35,000, payable in three months. You have sufficient cash at your bank in New York City that pays 0.35% interest per month, compounding monthly, to pay for the car. At present, the spot exchan
What is Vanna in option value?
Illustrates the way to optimize hedge.
Assume you are a euro-based investor who just sold Microsoft shares which you had bought six months ago. You had invested 10,000 euros to purchase Microsoft shares for $120 per share; the exchange rate was $1.15 per euro. You sold the stock for $135 per share
When the quantitative finance is disrepute?
When you add random numbers and get normal, what occurs when you multiply them?
Opportunity costs affect the capital budgeting decision-making process. Explain.
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