Example of Model-independent hedging
Give an example of Model-independent hedging.
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Model-independent hedging: An illustration of this hedging is put–call parity.
What is backward equation?
Explain Weak-form deficiency in Efficient Markets Hypothesis.
Illustrates an example of Option Adjusted Spread. Answer: Analyses by using Option Adjusted Spreads are common within Mortgage-Backed Securities (MBS).
How does AR (accounts receivable) factoring work? What are the risks and benefits to the two parties involved?
How are brokers compensated? What is the role of a broker in security transactions?
Illustrates an example to explain normal distribution of random numbers?
Explain different approaches to modelling in Quantitative Finance.
Who gave the pricing of options to the simulation of random asset paths?
Explain another way of interpreting put–call parity.
From books of Aggarwal Bors, following information has been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is e
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