Explain put–call parity is a model-independent relationship
Illustrates that the put–call parity is a model-independent relationship.
Expert
Calls and puts with similar strike and expiration should have similar implied volatility. The attractiveness of put–call parity is that this is a model-independent relationship. In order to value a call on its own we require a model for the stock price, within particular its volatility. Very similar is true for valuing a put. Expect to value a portfolio having a long call and a short put, it may vice versa, no model is required. This model-independent relationship is few and far between in finance.
What are those factors that common stockholders would consider while deciding how much cash dividends they want from corporation in which they have invested?
Explain valid criticisms of Value at Risk.
Explain marking to market will put some rationality back in trading.
Explain number of dimensions in Monte Carlo method.
Explain Poisson process in Brownian motion.
Describe how the potential liability of owners of proprietorships, corporations and partnerships is different.
Why is Value at Risk important? Specified with reasons?
Normal 0 false false
Why are most futures positions closed out through a reversing trade instead of held to delivery?In forward markets, about 90 percent of all contracts that are primarily established result in the short making delivery to the long of the asset und
18,76,764
1951167 Asked
3,689
Active Tutors
1411783
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!