What is calibration in valuation/pricing process
What is calibration in valuation/pricing process?
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While a quant has to value an exotic contract then he looks to the exchange-traded vanillas to provide him some insight in what volatility to utilize. It is calibration.
What are the ways to build-up the volatility effect in an option-pricing?
Why financial ratio analysis requires trend analysis and industry comparison?
What is Static Hedging?
Banks determine it essential to accommodate their client's needs to purchase or sell foreign exchange forward, in several instances for hedging purposes. How can the bank abolish the currency exposure it has formed for itself by accommodating a client's forw
Company A is a AAA-rated firm wanting to issue five-year FRNs. It determines that it can issue FRNs at six-month LIBOR + 1/8 percent or at the six-month Treasury-bill rate + ½ percent. Specified its asset structure, LIBOR is the preferred index. Comp
How can stocks are squeezed in the Black–Scholes framework when it falls dramatically?
what would it cost an insurance company to replace a family's personal property that originally cost $18,000? the replacement costs for the items have increased 15 percent.
What are the modern approaches uses for forecast volatility and model?
Explain in brief the depreciation expense as it comes on the income statement. How can depreciation affect the flow of cash?
What is the Volatility Smile?
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