What is transition probability density function
What is transition probability density function? Explain the term with forward and Backward Equations.
Expert
The transition probability density function p(y, t; y’, t’) is the function of four variables denoted byProb(a < y < b at time t’y at time t)
This simply implies the probability as the random variable y lies among a and b at time t’ within the future, specified that this started out with value y at time t. You can think of y and t as being current or starting values with y’ and t’ being future values.
The transition probability density function is p(y, t; y’, t’) suits two equations, one involving derivatives regarding the future state and time (y’ and t’ ) and termed as the forward equation, and the other involving derivatives respecting the current state and time (y and t) and termed as the backward equation. Those two equations are parabolic partial differential equations different to the Black–Scholes equation.
Describe how the potential liability of owners of proprietorships, corporations and partnerships is different.
Explain the programme of study of finite differences.
What are the advantages of “collecting early” and how do companies try to do this?
Describe the long position in an options contract?An option is a contract giving the long the right to buy or sell a given quantity of an asset at a particular price at some time in the future, however not enforcing any obligation on him if the
Why is actual volatility not easy to measure?
Mr. James K. Silber, an avid international investor, sold a share of Rhone-Poulenc only, a French firm, for FF42. The share was bought for FF42 year ago. The exchange rate is FF6.15 per U.S. dollar and was FF6.65 per dollar a year ago. Mr. Silber acquired FF4
Normal 0 false false
What is Modern Portfolio Theory?
Why is the money given time value?
B. Show how Kareem's WACC would change if the tax rate dropped to 25 percent and the estimated cost of equity capital were based on a risk-free rate of 7 percent, a market risk premium of 8 percent, and a systematic risk measure or beta of 2.0.
18,76,764
1961386 Asked
3,689
Active Tutors
1423829
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!