Explain the Jump-diffusion models in an option-pricing
Explain the Jump-diffusion models in an option-pricing.
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Jump-diffusion models permit the stock (and still the volatility) to be discontinuous. That model contains various parameters that calibration can be instantaneously further accurate (when not necessarily stable through time).
What is the significance of the term additional funds needed?
What are the reasons that Inventory is sometimes thought of as a needed evil.
Give an example of different types of mathematics found in Quantitative Finance?
Define the stochastic differential equation with an expression?
Explain number of dimensions in Monte Carlo method.
What is actual volatility? Answer: Actual volatility is the σ that goes in the Black–Scholes partial differential equation.
What is Co-integration?
One can state that the Bretton Woods system was programmed to an eventual demise. Remark on this proposition.The answer to this question is associated to the Triffin paradox. Under gold-exchange system, the reserve-currency country must run BOP
Explain the term complete market.
What are Implications of the normal distribution for Finance?
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