What is Monte Carlo Simulation
What is Monte Carlo Simulation?
Expert
Monte Carlo simulations are a method of solving probabilistic problems by numerically ‘imagining’ several possible scenarios or games so as to compute statistical properties as expectations, probabilities or variances of specific outcomes. In finance we utilize such simulations to show the future behaviour of equities, interest rates and exchange rates etc., in order to either study the possible future performance of a portfolio or in order to price derivatives.
Suppose today's settlement price on a CME DM futures contract is $0.6080/DM. You have a short position in one contract. Your margin account presently has a balance of $1,700. The next three days' settlement prices are $0.6066, $0.6073, & $0.5989. Compu
Explain in brief Crash Metrics.
Briefly discuss some services which international banks provide their customers & the market place.International banks can be considered by the sort of services they provide that distinguish them from domestic banks. Foremost, internat
Why do Quants like Closed-Form Solutions?
Explain sunk cost and it relevant when evaluating a proposed capital budgeting project? Explain.
How can financial managers estimate the average tax rate?
How does the theory of comparative advantage associate to the currency swap market?Name recognition is very important in the international bond market. Without it, even a creditworthy corporation will determine itself paying higher interest rat
Assume that the treasurer of IBM contains an extra cash reserve of $1,000,000 to invest for six months. The six-month interest rate is 8% per annum in the U.S. and 6% per annum in Germany. Now, the spot exchange rate is DM1.60 per dollar and the six-month forw
Illustrates the term serial autocorrelation?
What is the role of the derivatives of Serial Autocorrelation?
18,76,764
1960999 Asked
3,689
Active Tutors
1451065
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!