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.
Unfocused Books is a discount retail bookshop that has three departments: fiction, non-fiction and children’s books. Sales and cost of sales for each department are shown below. In addition, each department has its own fixed costs for staffing and takes a one-third share of rental and management cos
Define an example of a Quant and an Actuary.
Who introduced Long Term Capital Management Mess?
Explain the design patterns of an MFC application?
How you got to this result? One-Month 01-06 Three-Month 17-27 Six-Month 57-72
What is Arbitrage?
Your firm have just issued five year floating-rate notes indexed to six-month U.S. dollar LIBOR plus 1/4%. Describe the amount of first coupon payment your firm will pay per U.S. $1,000 of face value, if six-month LIBOR is at present 7.2%?Solution:
Describe how to calculate the overall balance and discuss its significance.The overall BOP is finding out by computing the cumulative balance of payments by including the current account, capital account, and the statistical discrepancies. The n
Society's interests can influence financial managers. Explain.
Describe necessary condition for a fixed-for-floating interest rate swap to be possible?For fixed-for-floating interest rate swap to be possible it is essential for a quality spread differential to be present. Generally, the default-risk premiu
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