Lsquolsquowhen interest rates are constant the ivf model, Business Law and Ethics

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Lsquolsquowhen interest rates are constant the ivf model

1. ‘‘The IVF model does not necessarily get the evolution of the volatility surface correct.'' Explain this statement.

2. ‘‘When interest rates are constant the IVF model correctly values any derivative whose payoff depends on the value of the underlying asset at only one time.'' Explain why.

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Business Law and Ethics: Lsquolsquowhen interest rates are constant the ivf model

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Business Law and Ethics: Lsquolsquowhen interest rates are constant the ivf model

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