Explain what is a Monte Carlo method
Explain what is a Monte Carlo method?
Expert
This method simulates the random behaviour underlying the financial models. Therefore, in a sense they find right to the heart of the problem. Always keep in mind that, while pricing you should simulate the risk-neutral random walks, the value of a contract is then the ordinary present value of all cash flows.
Illustrates an example of Co-integration?
Security returns are found to be less correlated across countries than in a country. Why can it be?Security returns are less correlated possibly because countries are distinct from each other in terms of industry structure, macroeconomic policie
While you have some random numbers for adding, get normal them then multiply them, is it important in finance?
Assume that the treasurer of IBM contains an extra cash reserve of $1,000,000 to invest for six months. The six-month interest rate is 8% per annum in the U.S. and 6% per annum in Germany. Now, the spot exchange rate is DM1.60 per dollar and the six-month forw
Normal 0 false false
What are some of the primary advantages and the risks when a corporation has operations in countries other than its home country?
How are short or future option margins to be paid at credit risk?
Explain the important properties of Brownian motion.
Compare and contrast the ethical and legal obligations for a: (i) CFP practitioner (ii) member of the FPA (iii) a financial services professional.
18,76,764
1939364 Asked
3,689
Active Tutors
1425190
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!