Who explain short-term interest rate by a stochasti
Who illustrated short-term interest rate through a stochastic differential equation?
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Oldrich Vasicek illustrated the short-term interest rate through a stochastic differential equation of the form:
dr = µ(r, t) dt + σ(r, t) dX.
The bond pricing equation is a parabolic partial differential equation, same to the Black–Scholes equation.
Explain the term Modigliani–Modigliani measure.
From books of Aggarwal Bors, following information has been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax
Does High operating leverage mean high business risk. Elaborate the statement.
What is Black–Scholes equation? Explain.
Illustrates an example of traditional Value at Risk by Artzner et al?
Why do Quants like Closed-Form Solutions?
Describe difference between international financial management and domestic financial management?
When the quantitative finance is disrepute?
Explain in brief the non-diversifiable risk and ways to measure it?
Give explanation: The banks try to make short-term self-liquidating loans to businesses.
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