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).
Explain all the model and experiments of Robert Merton.
What are the important observations about hedging error?
Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the vlaue of its current stock price? Assuming that the discount rate is 10%.{Hint: pages 84-
Explain Semi-strong form efficiency in Efficient Markets Hypothesis.
What is mathematical definition of risk in form of semi-variance?
Explain relationship between advanced probability theory and option prices theory.
Explain the term CGARCH as of the GARCH’s family.
What is a Jump-Diffusion Model in Poisson Process?
What is Colour for option value?
What are Uses of Wiener Process/Brownian Motion in Finance? Answer: This is the most common stochastic building block for random walks within finance.<
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