What is transition probability density function
What is transition probability density function? Explain the term with forward and Backward Equations.
Expert
The transition probability density function p(y, t; y’, t’) is the function of four variables denoted byProb(a < y < b at time t’y at time t)
This simply implies the probability as the random variable y lies among a and b at time t’ within the future, specified that this started out with value y at time t. You can think of y and t as being current or starting values with y’ and t’ being future values.
The transition probability density function is p(y, t; y’, t’) suits two equations, one involving derivatives regarding the future state and time (y’ and t’ ) and termed as the forward equation, and the other involving derivatives respecting the current state and time (y and t) and termed as the backward equation. Those two equations are parabolic partial differential equations different to the Black–Scholes equation.
what happens to company when additional fund is not required?
International Finance: It is the branch of economics which studies the dynamics of exchange rates, foreign investment, and how such affect international trade. International finance activities aid organizations emp
Assess a home country's multinational corporations as tool for international diversification.In spite of the fact that MNCs have operations worldwide, their stock prices act very much like purely domestic firms. It is puzzling yet undeniable. Co
Compare and contrast the ethical and legal obligations for a: (i) CFP practitioner (ii) member of the FPA (iii) a financial services professional.
Why is Vomma/Volga measures convexity?
Normal 0 false false
Describe how the potential liability of owners of proprietorships, corporations and partnerships is different.
What is the reason that a company would probably not issue $1 million worth of fresh common stock in January to evade all short-term borrowing during the year?
Illustrates an example of probabilities in a simple coin-tossing experiment.
Explain risk in various forms.
18,76,764
1936740 Asked
3,689
Active Tutors
1412605
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!