Explain the second way of calibration
Explain the second way of calibration if we can’t measure that parameter.
Expert
Another method is to assume, efficiently, that there is information in the market prices of traded instruments. Here in example we ask what volatility we should put in a formula to find the ‘correct’ price of $19. We then utilize that number to price other instruments. There In that case we have calibrated our model to an instantaneous snapshot of the market on one moment in time, quite than to any information by the past.
Explain how and why to resolve a “ranking conflict” between the internal rate of return and the net present value.
Who said, merger doesn’t create more risk?
foreign countries to finance its current account deficits
When you add random numbers and get normal, what occurs when you multiply them?
What is the role of earnings and cash while a corporation is deciding how much cash dividends to give to common stockholders?
What are the ratios that a potential long-term bond investor would be most interested in?
Assume Morgan Guaranty, Ltd. is quoting swap rates as follows: 7.75 - 8.10 percent annually against six-month dollar LIBOR for dollars and 11.25 - 11.65 percent annually against six-month dollar LIBOR for British pound sterling. At what rates will Morgan Gua
Explain the factors that responsible for the recent surge in international portfolio investment (IPI)?
Elaborate: The increased common stock cash dividend can send a signal to the common stockholders.
Illustrates an example relates with risk that defined in mathematical terms.
18,76,764
1934101 Asked
3,689
Active Tutors
1433059
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!