Explain possible future paths for an asset
Explain possible future paths for an asset, proposed by Boyle Phelim.
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Boyle Phelim demonstrated how to get the fair value of an option by generating a lot of possible future paths for an asset and after that looking at the average which the option had paid off.
How is volatility associated to the standard deviation of the underlying’ return?
What happens if the correlation coefficient for two variables is -1 or 0 or +1?
Explain the Simulations tool in Quantitative Finance.
Which is the deciding factor for rejecting or accepting proposed projects while using internal rate of return?
From books of Aggarwal Bors, following information has been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax
Explain the second way of calibration if we can’t measure that parameter.
What is complete market and incomplete market in term of probabilistic?
How and why does working capital affect the incremental cash flow estimation for a proposed large capital budgeting project?
For equities the standard model is the lognormal model, if there are many more ‘standard’ models within fixed income. Does it matter?
Explain distribution of quants’ salaries with a survey on a company.
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