Determine the efficiency of Numerical integration
Determine the efficiency of Numerical integration?
Expert
There are several numerical quadrature methods. But the two most common are based on random number generation again. One uses normally distributed numbers and the other uses what are termed as low-discrepancy sequences. The low-discrepancy numbers are clever in which they appear superficially to be random but don't contain the inevitable clustering that truly random numbers have.
Using the easiest normal numbers, if you need an accuracy of ε and you are pricing M options the time occupied will be O(Mε-2).
If you utilize the low-discrepancy numbers the time occupied will be O(Mε-1).
You can notice that this method is very fast, unfortunately this isn't frequently applicable.
How was a Monte Carlo simulation in finance assured?
A corporation can have too much working capital. Explain. Explain how can a firm estimate the optimal level of current assets.
Where can a profitable strategy exist?
A risk-adjusted discount rate improves capital budgeting decision making compared to using a single discount rate for all projects. Explain.
Define agent and his responsibilities.
Explain no arbitrage in classical finance theory and derivatives theory.
Briefly explain the operating leverage effect and the reason for it to occur? What are the advantages and limitations of high operating leverage?
Why is volatility annualized standard deviation of return?
You need to price a fixed-income contract by using the BGM model. Which numerical method should you use?
Suppose you are the swap bank in the Eli Lilly swap. Create an example of how you might lay off the swap to an opposing counterparty.The swap bank may attempt to lay off the swap on Japanese MNC which has issued yen denominated debt to finance
18,76,764
1960067 Asked
3,689
Active Tutors
1414443
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!