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.
Suppose current settlement price on a CME DM futures contract is $0.6080/DM. You contain a long position in futures contract. Presently your margin account contain a balance of $1,700. The next three days' settlement prices are $0.6066, $0.6073, & $0.598
Explain exotic or over-the-counter (OTC) contracts.
How is the implied volatility calculated?
Explain the tax considerations effect on the cost of equity and the cost of debt?
Which is the deciding factor for rejecting or accepting proposed projects while using net present value?
Explain the second way of calibration if we can’t measure that parameter.
What are the real differences between the partial differential equations?
Should you place all your money in a stock which has low risk but also low expected return, or one along with high expected return but that is far riskier or maybe divide your money among the two?
How is the option hedged?
Explain Quants’ salaries through a survey.
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