Explain an example of Brownian motion, where it is used
Explain an example of Brownian motion, where it is used.
Expert
For illustration, Brownian motion is used in the modelling of interest rates through mean-reverting random walks. Higher-dimensional versions of Brownian motion can be used to signify multi-factor random walks, as stock prices in stochastic volatility.
What is Co-integration?
Presently, the spot exchange rate is $1.50/£ and the three-month forward exchange rate is $1.52/£. The interest rate of three month is equal to 8.0% per annum in the U.S. & 5.8% per annum in the U.K. One can borrow as much as $1,500,000 o
What is intensity?
What is ordinal utility?
How can financial managers estimate the average tax rate?
What are possible ways of marking exotic or over-the-counter contracts?
What is the significance of the term additional funds needed?
Determine the efficiency of finite differences?
What is forward equation?
Explain the term implied volatility in Black–Scholes option-pricing equation.
18,76,764
1950667 Asked
3,689
Active Tutors
1456933
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!