Explain the uncertain volatility
Explain the uncertain volatility.
Expert
Uncertain volatility: The unseen volatility is an elegant solution for the problem of modelling it is also called uncertain, meaning that this is allowed to lie in a given range but whereabouts in which range it in fact is, or indeed probability of being at any value, which are left unspecified. With such type of model we no longer determine a single option price, but a range of prices, showing best-case scenario and worst-case scenario.
How can stocks are squeezed in the Black–Scholes framework when it falls dramatically?
Hebner Housing Corporation consist of forecast the given numbers for the upcoming year as follows: • Net income = 180,000. • Sales = $1,000,000. &b
Explain degree of confidence and the relationship along with deviation.
Explain stochastic volatility.
What are different volatilities in vanilla equity option?
Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 11%. They had 20-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 37% Preferred stock: Two thousand shares of preferred are outstanding,
Explain the Simulations tool in Quantitative Finance.
Who gave the pricing of options to the simulation of random asset paths?
What is a Jump-Diffusion Model in Poisson Process?
Would there be positive interest rates on bonds in a world with absolutely no risk (no default risk, maturity risk, and so on)? Why would a lender demand and a borrower be willing to pay, a positive interest rate in such a no risk world?
18,76,764
1950499 Asked
3,689
Active Tutors
1415109
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!