What are random factors for risk-neutral drifts
What are random factors for risk-neutral drifts?
Expert
As along with the HJM model the initial data are the forward rates therefore bond prices are calibrated automatically. One identifies a number of random factors and their volatilities and correlations among them, and the requirement of no arbitrage after that determines the risk-neutral drifts. Even though B, G and M have their names connected with this idea many others worked on this simultaneously.
Give an example of Model-independent hedging.
Define agent and his responsibilities.
Why might it be easier for an investor wishing to diversify his portfolio internationally to purchase depository receipts instead of the actual shares of the company?A depository receipt can be purchased on the investor's domestic exchange. It
Suppose a currency swap wherein two counterparties of comparable credit risk each borrow at the best rate obtainable, yet the nominal rate of one counterparty is greater than the other. After the primary principal exchange, is the counterparty i.e. required t
Explain in brief the way to incorporate management goals into pro forma financial statements.
Financing costs included into the capital budgeting analysis process. Explain.
What is the Theta in option value?
Normal 0 false false
Illustrates Black–Scholes Equation with an example?
Suppose current settlement price on a CME DM futures contract is $0.6080/DM. You contain a long position in futures contract. Presently your margin account contain a balance of $1,700. The next three days' settlement prices are $0.6066, $0.6073, & $0.598
18,76,764
1935369 Asked
3,689
Active Tutors
1440961
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!