Who explain short-term interest rate by a stochasti
Who illustrated short-term interest rate through a stochastic differential equation?
Expert
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 relationship between advanced probability theory and option prices theory.
Illustrates an example of complete and incomplete markets?
Stock price is $98; and European call option struck at $100 along with an expiration of nine months has a value of $9.07. There nine-month, compounded continuously, interest rate is 4.5%. So find out the value of the put option with the same strike and expirat
Why do analysts calculate financial ratios?
If taxable income is 82,900 and filing single, what is tax liability?
Give any benefits you can think of for any company to source new equity capital from foreign investors in addition to domestic investors. An enhancement in demand will normally increase the stock price and develop
Why is the money given time value?
Mr. James K. Silber, an avid international investor, sold a share of Rhone-Poulenc only, a French firm, for FF42. The share was bought for FF42 year ago. The exchange rate is FF6.15 per U.S. dollar and was FF6.65 per dollar a year ago. Mr. Silber acquired FF4
Which is associated to Sharpe Ratio?
How is Vega completely different from Greeks?
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