Explain standard model is the lognormal model
For equities the standard model is the lognormal model, if there are many more ‘standard’ models within fixed income. Does it matter?
Expert
No, not when you are solving the equations numerically, only when you are trying to get a closed-form solution wherein case the simpler the coefficients the more probable you are to get a closed-form solution.
Illustrates an example of probabilities in a simple coin-tossing experiment.
Where is Crash Metrics Applicable?
Explain The characteristic of perceiver and perceived
Explain the term utility function and uses.
What is Vomma or Volga in option value?
Company A is a AAA-rated firm wanting to issue five-year FRNs. It determines that it can issue FRNs at six-month LIBOR + 1/8 percent or at the six-month Treasury-bill rate + ½ percent. Specified its asset structure, LIBOR is the preferred index. Comp
what happens to company when additional fund is not required?
How was a Monte Carlo simulation in finance assured?
Explain probability of some buses having arrived when the Poisson process is utilized.
Explain the conditions for assuming a deterministic stock price path for an equity option.
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