Explain the term complete market
Explain the term complete market.
Expert
A slightly too mathematical, yet even quite easily understood, explanation is to say that a complete market is one for that there exist similar number of linearly independent securities like there are states of the world in the further future.
What will be the effect on riskiness of a portfolio if assets with negative correlations (even very low correlations) are taken together?
Describe balance of payments identity and explain its implication under the fixed & flexible exchange rate regimes.The balance of payments identity holds that the combined balance on the current & capital accounts have to be equivalent i
Suppose spot Swiss franc is $0.7000 and the six-month forward rate is $0.6950. Estimate the minimum price which a six-month American call option along with a striking price of $0.6800 must sell for in a rational market? Suppose the annualized six-month Eurod
Researchers found that this is very hard to forecast the future exchange rates more precisely than the forward exchange rate or the current spot exchange rate. How would you interpret this?This implies that exchange markets are informationally e
When is an exploitable opportunity usually seen for excess returns?
What is Hedge?
Illustrates an example of Option Adjusted Spread. Answer: Analyses by using Option Adjusted Spreads are common within Mortgage-Backed Securities (MBS).
What is Crash Metrics?
Explain technical terms in Girsanov’s Theorem.
Why is Value at Risk important? Specified with reasons?
18,76,764
1930126 Asked
3,689
Active Tutors
1412093
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!