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 technical terms in Girsanov’s Theorem.
How is the risk into portfolio measured in Crash Metrics?
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
What is Vanna in option value?
Describe how the special drawing rights (SDR) are constructed. Also, discuss the situation under which the SDR was build.SDR was created by the IMF in the year of 1970 as a new reserve asset, partially to alleviate the pressure on the U.S. dolla
What are those factors that common stockholders would consider while deciding how much cash dividends they want from corporation in which they have invested?
Describe the long position in an options contract?An option is a contract giving the long the right to buy or sell a given quantity of an asset at a particular price at some time in the future, however not enforcing any obligation on him if the
Explain probability of some buses having arrived when the Poisson process is utilized.
What are Pros and cons of different methods? Answer: Table illustrate
Explain relationship between advanced probability theory and option prices theory.
18,76,764
1932560 Asked
3,689
Active Tutors
1424147
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!