What are Finite-difference methods
What are Finite-difference methods?
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Finite-difference methods are designed for determining numerical solutions of differential equations. Because we work with a mesh, same the binomial method, we will get the contract value at whole points is stock price-time space. Within quantitative finance that differential equation is roughly always of parabolic or diffusion type.
Explain risk in various forms.
Determine the efficiency of Numerical integration?
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Explain numerical integration in numerical method.
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Define an example to Hedge?
Grecian Tile Manufacturing of Athens, Georgia borrows $1,500,000 at LIBOR and a lending margin of 1.25 percent per annum on six-month rollover basis through London bank. If six-month LIBOR is 4 ½ percent in the first six-month interval and 5 3/8 percent over the second six-mo
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