--%>
Assignment Help - homework help

Explain the Jump-diffusion models in an option-pricing

Explain the Jump-diffusion models in an option-pricing.

E

Expert

Verified

Jump-diffusion models permit the stock (and still the volatility) to be discontinuous. That model contains various parameters that calibration can be instantaneously further accurate (when not necessarily stable through time).

   Related Questions in Financial Management

  • Q : Bidding You are required to submit a

    You are required to submit a bid to supply 200,000,000 widgets per year to the State of Illinois for the next five years. Your company has an idle tract of real estate that cost $1,500,000 ten years ago; if your company sold the land today, it would generate $3,000,000 after the taxes were paid. The

    		•
  • Q : Warning of David regarding lending to

    Normal 0 false false

    		•
  • Q : Compute the cross-rates Calculate a

    Calculate a cross-rate matrix for the French franc, Japanese yen, German mark, and the British pound. Use the most current European term quotes to compute the cross-rates so that the triangular matrix result is alike to the portion above the diagonal .The cross-rate formul

    		•
  • Q : Describe Euronote market Describe

    Describe Euronote marketEuronotes are short-term notes written through a group of international investment or commercial banks termed a “facility.”  A client-borrower makes an agreement along with a facility to issue Euronotes i

    		•
  • Q : Explain the different types of arbitrage

    Explain the different types of arbitrage.

    		•
  • Q : BEP From books of Aggarwal Bors,

    From books of Aggarwal Bors, following information has been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is e

    		•
  • Q : Describe the three major trend in

    Describe the three major trends which have prevailed in international business at the time the last two decades.The 1980s brought a quick integration of international capital & financial markets. Impetus for globalized financial markets prim

    		•
  • Q : Explain financial markets and why do

    Explain financial markets and why do they exist?

    		•
  • Q : Explain various explanations regarding

    Explain various explanations regarding risk-neutral pricing.

    		•
  • Q : Explain statistical modelling way of

    Explain statistical modelling way of determine the model.

    		•