Explain probability of some buses with Poisson process
Explain probability of some buses having arrived when the Poisson process is utilized.
Expert
If the Poisson process is utilized to model events, like the arrival of buses at a bus-stop, then we can respond questions about the number of buses arriving along with an exact time using the result as follows:
P(q(t) = n) = e-λt(λt)n/n!.
It is the probability of exactly n buses having arrived or there having been n asset price jumps in a time t.
What are the ratios that a potential long-term bond investor would be most interested in?
What is the Volatility Smile?
$100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is ________.
How is hedging requirement decreased by a gamma-neutral strategy?
What are a callable bond and a putable bond? How can each of these bonds affect their market interest rates?
Explain the Deterministic modelling approach in Quantitative Finance.
What is actual volatility? Answer: Actual volatility is the σ that goes in the Black–Scholes partial differential equation.
Explain Capital Asset Pricing Model returns on individual assets and Arbitrage Pricing Theory returns on investments.
Compare & contrast the several types of secondary market trading structures. There are two fundamental types of secondary market trading structures: dealer & agency. In a dealer market, the dealer serves as market maker for the securit
What are the difference between complete market and binomial model?
18,76,764
1943869 Asked
3,689
Active Tutors
1418032
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!