Illustrates an example of jump-diffusion model
Illustrates an example of jump-diffusion model?
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A stock follows the lognormal random walk. In each month you roll a dice. As you roll a one so the stock price jumps discontinuously. The size of its jump is decided through a random number you draw from a hat. It is not a great illustration as the Poisson process is a continuous process, not a quarterly event.
What is Volatility? Answer: It is annualized standard returns’ deviation.
Explain when the dividends should be similar to discounted.
How is Sortino Ratio Work?
Should you place all your money in a stock which has low risk but also low expected return, or one along with high expected return but that is far riskier or maybe divide your money among the two?
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
Question 1 You just took out a variable-rate mortgage on your new home. The mortgage value is $100,000, the term is 30 years, and initially the interest rate is 8%. The interest rate is fixed for
From books of Aggarwal Bors, following information has been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax
$100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is ________.
Define an example of a Quant and an Actuary.
Explain decision features in Monte Carlo method.
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