Explain the result of volatility structure
Explain the result of volatility structure.
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The resulting volatility structure that never matches actual volatility, and even though exotics are priced consistently this is not clear how to best hedge exotics with vanillas so as to minimize any model error. These concerns seem to carry little weight, because the method is so ubiquitous. As so frequently happens in finance, once a technique becomes popular this is hard to go against the majority. There should be job safety in numbers.
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What is optimal capital structure?
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Please Assist with the attached Data Case Assignment
Does it make any sense to compute betas against local indexes while a company has a great part of its operations outside such local market? I have two illustrations: BBVA and Santander.
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