What is calibration in valuation/pricing process
What is calibration in valuation/pricing process?
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While a quant has to value an exotic contract then he looks to the exchange-traded vanillas to provide him some insight in what volatility to utilize. It is calibration.
What is Black–Scholes equation? Explain.
At the beginning of the year of 1996, the yearly interest rate was 6 percent in the United States and 2.8 percent in Japan. At the time the exchange rate was 95 yen per dollar. Mr. Jorus, the manager of a Bermuda-based hedge fund, thought that the substantial
Give explanation: The banks try to make short-term self-liquidating loans to businesses.
Explain in brief the difference between financial risk and business risk?
What are the difference between complete market and binomial model?
What is an option price?
Explain the reasons of Quants to like, close form solution?
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Assume that the pound is pegged to gold at 6 pounds per ounce, while the franc is pegged to gold at 12 francs per ounce. Of course it implies that the equilibrium exchange rate ought be two francs per pound. If the current market exchange rate is 2.2 francs pe
Illustrates an example of Co-integration?
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