Illustrates an example of Co-integration
Illustrates an example of Co-integration?
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Assume you have two stocks S1 and S2 and you get that S1 − 3 S2 is stationary; therefore this combination never strays more far from its mean. When one day it ‘spread’ is mainly large then you would have sound statistical reasons for thinking as spread might shortly decrease, giving you a possible source of statistical arbitrage profit. It can be the basis for pairs trading.
Explain the econometric models.
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
When we can use Finite difference numerical method?
You are trying to save to buy a new $150,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 5.5% annual interest rate on its accounts. How long will it be before you have enough to buy the car?
Explain the relationship between the European calls, puts value with similar strike and expiration value.
Illustrates an example of jump-diffusion model?
What are the actions to be taken when the analysis of pro forma financial statements shows positive trends or Negative trends?
What is Rho for the foreign exchange option value?
How can you utilize the traded prices?
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