The volatility effect in an option-pricing
What are the ways to build-up the volatility effect in an option-pricing?
Expert
There are several ways to build the volatility-smile effect in an option-pricing model, and even have no arbitrage. The most admired are, in order of complexity, given below: deterministic volatility surface, stochastic volatility and Jump diffusion.
Explain marking to market with an example.
What is Vega?
What is complete market and incomplete market in term of probabilistic?
Illustrates an example of Frechet distribution?
Explain the different types of arbitrage.
Illustrates the term serial autocorrelation?
We attain the following data in dollar terms: The correlation
Normal 0 false false
Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 11%. They had 20-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 37% Preferred stock: Two thousand shares of preferred are outstanding,
18,76,764
1951137 Asked
3,689
Active Tutors
1449617
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!