Explain decision features in Monte Carlo method
Explain decision features in Monte Carlo method.
Expert
Decision features: While you have a contract with embedded decisions the Monte Carlo method turns into cumbersome. This is simply the main disadvantage for simulation methods. When we utilize the Monte Carlo method we only get the option value at today’s stock price and time. But to rightly price an American option, say, we require to know what the option value would be at each point in stock price-time space. We don’t classically find it as part of the Monte Carlo solution.
foreign countries to finance its current account deficits
What is transition probability density function? Explain the term with forward and Backward Equations.
What are the ways to make the financial trades on an organized exchange?
If taxable income is 82,900 and filing single, what is tax liability?
Illustrates an example of measure of risk aversion?
What are uses of Poisson Process in Finance?
Which is lesser for a particular company: the cost of equity or the cost of debt (ignoring taxes)? Explain.
What are different volatilities in vanilla equity option?
Who measured risk as coherent, in finance theory?
Example of Girsanov’s Theorem.
18,76,764
1932446 Asked
3,689
Active Tutors
1413080
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!