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).
What is a Wiener Process/Brownian Motion?
Illustrates an example of forward equation?
1)What 3 items of important information does the income statement reveal about the financial performance of the company over the last three years?
Where is Performance measures used?
What is Maximum Likelihood Estimation?
Explain the term utility function and uses.
Why might it be easier for an investor wishing to diversify his portfolio internationally to purchase depository receipts instead of the actual shares of the company?A depository receipt can be purchased on the investor's domestic exchange. It
The United States contain experienced continuous present account deficits since the early 1980s. What do you think are the foremost reason for the deficits? What would be the consequences of continuous U.S. present account deficits?The present a
Explain the experiment of Oldrich Vasicek of short-term interest rate.
Explain the tool of Series solutions in Quantitative Finance.
18,76,764
Questions Asked
21,311
Experts
9,67,568
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!