What is nonlinearity in option pricing model
What is nonlinearity in option pricing model?
Expert
Nonlinearity in an option pricing model implies that the value of a portfolio of contracts is not essentially the same as the sum of its constituent parts values. An option will have a various value depending on what else is within the portfolio with this, and an exotic will have a different value depending on what this is statically hedged along with.
I heard conversation of the Earnings Yield Gap ratio, that is the difference among the inverse of the PER and the TIR on 10-year-bonds. This is said that if this ratio is positive then this is more advantageous to invest in equity. How much confidence can an investor
Is there any relationship in between the flow to shareholders and the net income?
Commercial Paper: It is an unsecured obligation issued by the corporation or bank to finance its short-term credit requirements, like accounts inventory and receivable. Maturities usually range from 2 to 270 days. The commercial paper is accessible in
Active vs. Passive fund managers: Passive fund managers adopt a long term buy and hold strategy. Usually, stocks are purchased so that the portfolio’s returns will track those of an
Is this true that a company creates value for its shareholders in a year when this distributes dividends or when the quotation of the shares increases?
I read in a sentence passed through the Supreme Court that, so as to value companies, economic doctrine relies upon intermediary methods among ‘Anglo-Saxon’ theoretical models and the practical models common in the United
The 2010 income statements of Leggett and Platt, inc. reports net sales of $4,076.1 million in 2010 and $4,250 million in 2009. The balance sheet reports accounts and other receivables, net of $550.5 million at December 31, 2010 and $640.2 million at December 31, 2009
When computing the WACC, is the weighting of the shares done and the debt with book values of debt and shareholder’s equity or along with market values?
A financial consultant is valuing the company I set as an objective (an entertainment centre) by discounting the cash flows until the end of the dealership at 7.26% (interest rate on 30-year-bonds = 5.1%; market premium = 5%, and Beta = 0.47%). 0.47 is a beta provided
What are the Attributes of debt securities?
18,76,764
1931799 Asked
3,689
Active Tutors
1456090
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!