How is Poisson process defined
How is Poisson process defined?
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A Poisson process dq is described by the limit like dt goes to zero of
dq = 0 with probability if 1 − λ dt
dq = 1 with probability if λ dt.
What is the reason that a company would probably not issue $1 million worth of fresh common stock in January to evade all short-term borrowing during the year?
factor responsible for surging the international investment portfolio
Describe triangular arbitrage? What is a condition which will give increase to a triangular arbitrage opportunity?Triangular arbitrage is the procedure of trading out of the U.S. dollar in a second currency, then trading it for a third currency
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
Illustrates a swap dealer. A swap dealer is a market maker of swaps and supposes a risk position in matching opposite sides of a swap and in assuring that each of counterparty fulfils its contractual compulsion to
What is Girsanov’s Theorem and Why is it Important in Finance?
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
Explain valid criticisms of Value at Risk.
How are financial or economic variable represented by index?
Illustrates an example of Efficient Markets Hypothesis?
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