The tool of Asymptotic analysis in Quantitative Finance
Explain the tool of Asymptotic analysis in Quantitative Finance.
Expert
Asymptotic analysis: It is an incredibly useful technique, utilized in most branches of applicable mathematics, but till recently almost unknown in finance. The idea is simple to get approximate solutions to a complicated problem through exploiting parameters or variables which are either large or small, or particular in some way. For illustration there are simple approximations for vanilla option values close to expiry.
How is hedging optimized when transaction costs are there?
How was a Monte Carlo simulation in finance assured?
Explain the term: annuity. How can continuous compounding benefit an investor?
Given: price of Nokia shares on the Helsinki stock exchange=12 euros, exchange rate=$1.3/euro, price of the ADR on the NYSE=$15 and each foreign share translates into 1 ADR. Show the actions you would take to make risk free arbitrage profits.
Explain the terms: diversifiable and non-diversifiable risk. Which one is more important to financial managers in business firms?
Explain Poisson process in Brownian motion.
Explain the formula of hedging contract.
Normal 0 false false
What is the meaning of statement: earnings available to common stock dividends paid from the current income and common stockholders statement affect the balance sheet item retained earnings.
What is actual volatility? Answer: Actual volatility is the σ that goes in the Black–Scholes partial differential equation.
18,76,764
1944497 Asked
3,689
Active Tutors
1454888
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!