Explain functional form of coefficient in Monte Carlo method
Explain functional form of coefficients in Monte Carlo method.
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Functional form of coefficients: As along with the finite-difference methods it doesn’t issues too much what the volatility and drift functions are in practice, because you won’t be looking for closed-form solutions.
Based on the information below, calculate the weighted average cost of capital. Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 10%. They had 25-year terms and $1,000 face values. They are now selling to yield 9%. Th
Explain different types of hedge.
A bank sells a $3,000,000 FRA for a three-month period beginning three months from today and ending six months from today. The purpose of the FRA is to cover the interest rate risk caused by the maturity mismatch from having made a three-month Eurodollar loan and having accepted a six-month Eurodol
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