What are the characteristics of calibration
What are the characteristics of calibration?
Expert
Calibration is common inside all markets, but is typically more complicated than in the simple illustration above. Interest rate models may have dozens of parameters or still entire functions to be selected by matching along with the market.
Therefore Calibration can frequently be time consuming. Calibration is an illustration of an inverse problem, wherein we know the answer (the prices of easy contracts) and need to find the problem (all the parameters). Inverse problems are notoriously complicated, for illustration being very sensitive to initial conditions. It can be misleading, because it suggests that your prices are accurate.
Security returns are found to be less correlated across countries than in a country. Why can it be?Security returns are less correlated possibly because countries are distinct from each other in terms of industry structure, macroeconomic policie
What is shadow Greeks?
Would exchange rate alter always enhance the risk of foreign investment? Describe the condition under which exchange rate changes may in fact reduce the risk of foreign investment. Exchange rates changes require no
Describe balance of payments identity and explain its implication under the fixed & flexible exchange rate regimes.The balance of payments identity holds that the combined balance on the current & capital accounts have to be equivalent i
Can I get the answers for straight supply?
What is implied volatility? Answer: Implied volatility is number into the Black–Scholes formula which makes a theoretical price equal a market price.
How is Information Ratio calculated?
What are the time dimensions of the balance sheet, the income statement and the statement of cash flows?
If we can’t measure calibration parameter how can we choose on its value?
Explain relationship between advanced probability theory and option prices theory.
18,76,764
1925775 Asked
3,689
Active Tutors
1450032
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!