State the term Option Adjusted Spread
State the term Option Adjusted Spread? Answer: The OAS stands for Option Adjusted Spread is the constant spread added to a forward or a yield curve to match the market price of several complex instruments and the present value of all its cash flows.
State the term Option Adjusted Spread?
Answer: The OAS stands for Option Adjusted Spread is the constant spread added to a forward or a yield curve to match the market price of several complex instruments and the present value of all its cash flows.
Which is associated to Sharpe Ratio?
You are trying to save to buy a new $150,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 5.5% annual interest rate on its accounts. How long will it be before you have enough to buy the car?
What is an LBO (leveraged buyout)? Explain the risks and the potential rewards for the equity investors.
What is Rho for the foreign exchange option value?
Explain all mathematical laws under the condition of Central Limit Theorem.
Explain in brief capital rationing? What are reasons that a firm should practice capital rationing?
Illustrate how the bank can employ a position alternatively in Eurodollar futures contracts to hedge the interest rate risk formed by the maturity mismatch it has with the $3,000,000 six-month Eurodollar deposit & rollover Eurocredit position indexed to th
Define the term Hedging using implied volatility?
You need to price an option that is paid for within instalments, and you can stop paying and lose the option. Which numerical method should you use?
What is Sub-additivity?
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