The tool of Asymptotic analysis in Quantitative Finance
Explain the tool of Asymptotic analysis in Quantitative Finance.
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Asymptotic analysis: It is an incredibly useful technique, utilized in most branches of applicable mathematics, but till recently almost unknown in finance. The idea is simple to get approximate solutions to a complicated problem through exploiting parameters or variables which are either large or small, or particular in some way. For illustration there are simple approximations for vanilla option values close to expiry.
How is estimate of volatility or the implied volatility used?
Give an example of closed form solution?
What is calibration in valuation/pricing process?
Criticize the flexible exchange rate regime from the point of view of the proponents of the fixed exchange rate regime. If exchange rates are randomly fluctuating, that may discourage international trade and suppor
How is the option hedged?
How is risk defined in mathematical terms?
With whom Sharpe is shared Nobel Prize (1990)?
Janice Colangelo heads the Training Centre of the large HR Consulting firm EMT Consulting. The firm has three major departments: Recruitment, Training and Career Services. The Training Centre provides management training for employees of various businesses. Recruitment provides recruitment service
Explain Semi-strong form efficiency in Efficient Markets Hypothesis.
One can state that the Bretton Woods system was programmed to an eventual demise. Remark on this proposition.The answer to this question is associated to the Triffin paradox. Under gold-exchange system, the reserve-currency country must run BOP
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