Explain number of dimensions in finite-difference methods
Explain the term number of dimensions in finite-difference methods.
Expert
Number of dimensions: Is there any strong path dependence within the payoff? Is the contract an option at a single underlying or various? Answers to such questions will find out the number of dimensions in the problem. At the extremely least we will have two dimensions: asset (S or r), and time (t). Finite-difference methods cope very well with smaller no. of dimensions, up to four, as. Above that they get quite time consuming.
factor responsible for surging the international investment portfolio
Explain the term complete market.
Should you place all your money in a stock which has low risk but also low expected return, or one along with high expected return but that is far riskier or maybe divide your money among the two?
How are you able to measure real probabilities?
what are the factors responsible for the recent surge in international portfolio investment
Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 11%. They had 20-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 37% Preferred stock: Two thousand shares of preferred are outstanding
Normal 0 false false
Security returns are found to be less correlated across countries than in a country. Why can it be?Security returns are less correlated possibly because countries are distinct from each other in terms of industry structure, macroeconomic policie
What will an investment banker do while underwriting a new security issue for a corporation?
Explain in brief the difference between financial risk and business risk?
18,76,764
1953958 Asked
3,689
Active Tutors
1449973
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!