Explain lognormal stochastic differential equation
Explain lognormal stochastic differential equation for evolution of an asset.
Expert
One of the beginning points for typical derivatives theory is the lognormal stochastic differential equation for evolution of a certain asset. Itoˆ’s lemma defines the stochastic differential equation for value of an option on such asset. In mathematical terms, when we have a Wiener process X along with increments dX which are normally distributed along with mean zero and variance dt, in that case the increment of a function F(X) is specified by
dF = (dF/dX) dX + ½ (d2F/dX2) dt
It is a very loose dentition of Itˆ o’s lemma but it will suffice.
Hi, I was wondering if there is anyone who can perform numerical analysis and write a code when required. Thanks
How to get calculus homework done from tutor
Explain Black–Scholes model.
A leather wholesaler supplies leather to shoe companies. The manufacturing quantity requirements of leather differ depending upon the amount of leather ordered by the shoe companies to him. Due to the volatility in orders, he is unable to precisely predict what will b
if the average is 0.27 and we have $500 how much break fastest will we serve by 2 weeks
Explain trading of call options.
Detailed explanation of requirements for Part C-1 The assignment states the following requirement for Part 1, which is due at the end of Week 4: “Choose a topic from your field of study. Keep in mind you will need to collect at least [sic] 3- points of data for this project. Construct the sheet y
Please read the assignment carefully and confirm only if you are 100% sure. Please go through below mentioned guidelines and penalties: • Your solution must be accurate and complete. • Please do not change Subject Title of the Email. • Penalty clause will be applied in case of delayed or plag
It's a problem set, they are attached. it's related to Sider's book which is "Logic to philosophy" I attached the book too. I need it on feb22 but feb23 still work
Factorisation by trial division: The essential idea of factorisation by trial division is straightforward. Let n be a positive integer. We know that n is either prime or has a prime divisor less than or equal to √n. Therefore, if we divide n in
18,76,764
1943175 Asked
3,689
Active Tutors
1450041
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!