Explain exotic option-value of option pricing method
Explain exotic option’s value of option pricing method.
Expert
Avellaneda and Par´ as defined an exotic option’s value as the highest possible marginal value for which contract when hedged with any or all obtainable exchange-traded contracts. The result was which the method of option pricing also came along with its own technique for static hedging with many options. Previous to their work the only result of an option pricing model was its delta and value, only dynamic hedging was theoretically essential. With this new idea, theory became a main step closer to practice.
The other result of this technique was which the theoretical price of an exchange-traded option accurately matched its market price. This convoluted calibration of volatility surface models was redundant.
What are Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)?
Stock Market: To trade company shares (or stock) and derivatives, a stock market or equity market is public entity where these shares and derivatives are sold at agreed price. These are to be listed on a stock exchange in order to trade publicly.
The ROE is the ratio among net income and Shareholders’ equity. The meaning of Return on Equity is return to shareholders. Therefore, is ROE a correct measurement of the return to shareholders?
Explain breakthroughs on low-discrepancy sequences.
Who introduced put–call parity?
Give an illustration of a set of conflicts encountered when attempting to reduce working capital?
Explain the definition of put–call parity described by Reinach.
XYZ Company is planning to acquire a machine which will cost $200,000, that will last for 4 years. The company employs straight-line depreciation. The tax rate of XYZ is 35% and the proper discount rate in this situation is 12%. (A
The variance of a portfolio of 40 stocks will be the addition of _______ variance terms and _______ covariance terms. A) 40; 1560B) 40; 1600C) 80; 40D) 1600; 40
Please assist with the attached Data Case assignment
18,76,764
1927434 Asked
3,689
Active Tutors
1460194
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!