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.
What considerations might restrict the extent on which the theory of comparative advantage is realistic?Originally the theory of comparative advantage was advanced by the nineteenth century economist David Ricardo as an explanation for why natio
Give any benefits you can think of for any company to source new equity capital from foreign investors in addition to domestic investors. An enhancement in demand will normally increase the stock price and develop
Explain reward versus risk.
If we can’t measure calibration parameter how can we choose on its value?
Explain all possible ways of marking over-the-counter contracts.
Explain identical distributions required or not in the central limit theorem.
Can a company have a default rate on its accounts receivable that is very low?
Explain possible future paths for an asset, proposed by Boyle Phelim.
Why is traditional, simple VaR measurement not coherent?
Illustrates a case of a static arbitrage and model-independent arbitrage?
18,76,764
1956445 Asked
3,689
Active Tutors
1418512
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!