What will happen when a bank gives discount interest on loan
What will happen when a bank gives discount interest on a loan?
Expert
When a bank charges discount interest on a loan the required interest payment is subtracted from the loan proceeds at the time the loan is made. This makes the effective interest rate greater than the stated rate.
Why should we assume a deterministic stock price path for an equity option? Answer: Because the forward rate curve is not uniquely determined through the finite set
Why should we assume a deterministic stock price path for an equity option?
Answer: Because the forward rate curve is not uniquely determined through the finite set
Why is Vomma/Volga measures convexity?
Describe triangular arbitrage? What is a condition which will give increase to a triangular arbitrage opportunity?Triangular arbitrage is the procedure of trading out of the U.S. dollar in a second currency, then trading it for a third currency
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