What is backward equation
What is backward equation?
Expert
The backward equation termed as also the backward Kolmogorov equation it is
∂p/∂t + ½ B(y,t)2∂2p/∂y2 + A(y,t) ∂p/∂y = 0
This should be solved backwards in t with given last data.
For illustration, if we wish to compute the expected value of a few functions F(S) at time T we should solve this equation for the function p(S, t) along with
p(S, T) = F(S).
Describe the present economic crisis situation in Europe.
What is stable Levy Distribution?
Explain different forms of market efficiency.
Explain the method which restores the balance of payments equilibrium whereas it is disturbed under the gold standard.Under the gold standard the adjustment mechanism is referred to as the price-specie-flow mec
How can you make a decision of risk aversion or a utility function measure?
Explain marking to market will put some rationality back in trading.
What are the characteristics of an efficient market?
What happens if the correlation coefficient for two variables is -1 or 0 or +1?
Describe necessary condition for a fixed-for-floating interest rate swap to be possible?For fixed-for-floating interest rate swap to be possible it is essential for a quality spread differential to be present. Generally, the default-risk premiu
What is Crash Metrics?
18,76,764
1945354 Asked
3,689
Active Tutors
1452777
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!