What are Finite-difference methods
What are Finite-difference methods?
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Finite-difference methods are designed for determining numerical solutions of differential equations. Because we work with a mesh, same the binomial method, we will get the contract value at whole points is stock price-time space. Within quantitative finance that differential equation is roughly always of parabolic or diffusion type.
A bank sells a $3,000,000 FRA for a three-month period beginning three months from today and ending six months from today. The purpose of the FRA is to cover the interest rate risk caused by the maturity mismatch from having made a three-month Eurodollar loan and having accepted a six-month Eurodol
What the reason behind invest through investors the lion's share of their funds in domestic securities?Investors invest a lot in their domestic securities since there are significant barriers to investing overseas. The barriers may comprise exce
Explain the reasons why is quantitative finance in a mess?
Given: price of Nokia shares on the Helsinki stock exchange=12 euros, exchange rate=$1.3/euro, price of the ADR on the NYSE=$15 and each foreign share translates into 1 ADR. Show the actions you would take to make risk free arbitrage profits.
Who gave the pricing of options to the simulation of random asset paths?
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