Explain an example of finite-difference method
Explain an example of finite-difference method.
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Several financial problems can be cast as partial differential equations. Generally these cannot be solved analytically and so they should be solved numerically.
What is implied volatility? Answer: Implied volatility is number into the Black–Scholes formula which makes a theoretical price equal a market price.
You need to price an option that is paid for within instalments, and you can stop paying and lose the option. Which numerical method should you use?
9. Define: a) Conversion ratio b) Conversion value c) Straight bond value in relation to a convertible bond.
Illustrates an example of Arbitrage?
What is a mathematical definition of risk?
What is Delta Hedging?
What is Modern Portfolio Theory?
Explain the common pattern of cash flows from a bond with a positive coupon rate.
Describe a full definition of arbitrage. Arbitrage can be described as the act of simultaneously buying & selling the similar or equivalent assets or commodities for the reason of making certain, guaranteed pro
Determine the efficiency of Monte Carlo method.
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