Functional form of coefficients in finite-difference methods
Explain the term functional form of coefficients in finite-difference methods.
Expert
Functional form of coefficients: The main difference between a single-factor interest rate option problem and an equity option problem is in the functional form of the volatility and the drift rate. These appear during the governing partial differential equations like coefficients.
What are the modern approaches uses for forecast volatility and model?
Define the term correct delta with an example?
What are a callable bond and a putable bond? How can each of these bonds affect their market interest rates?
the criteria for a good international financial or monetary system
A corporation enters in a five-year interest rate swap along with a swap bank wherein it agrees to pay the swap bank a fixed-rate of 9.75 percent annually on a notional amount of DM15,000,000 and attain LIBOR - ½ percent. As of the second reset date,
What kind of insurance organisations usually takes on the greater risks: a life insurance company or casualty insurance company and a property?
Define the term pricing derivatives in Monte Carlo simulations.
What is Sub-additivity?
What is the Capital Asset Pricing Model?
Explain the stochastic volatility in an option-pricing.
18,76,764
1941106 Asked
3,689
Active Tutors
1433770
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!