Example of Forward and Backward Equations
Example of Forward and Backward Equations.
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1.88 is an exchange rate currently. What is the probability that this will be over 2 by it time next year? For this exchange rate when you have a stochastic differential equation model then such question can be answered by using the equations for the transition probability density function.
How does the deposit-loan rate spread out into the Eurodollar market compare to the deposit-loan rate spread out in the domestic U.S. banking system? Why?The deposit-loan spread out in the Eurodollar market is narrower than in the domestic
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When we can use Finite difference numerical method?
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