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.
How is the risk into portfolio measured in Crash Metrics?
Explain the term implied volatility in Black–Scholes option-pricing equation.
What does a dealer do in the OTC market? Financial trades are made in an over the counter market. Explain.
Explain the programme of study of numerical integration.
Illustrates Black–Scholes Equation with an example?
How much will transaction costs decrease the profit?
A CD/$ bank trader is at present quoting a small figure bid-ask of 35-40, while the rest of the market is trading at CD1.3436-CD1.3441. What is implied regarding the trader's beliefs by his prices?The trader have to think the Canadian dollar wi
Where is Crash Metrics Used?
Can I employ real probabilities for pricing derivatives? Answer: Yes you can. But you may require moving away from classical quantitative finance.
What will be the ill effects of holding too much cash by a company? Describe the factors affecting the choice of a maximum cash balance amount.
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