Add random numbers, find normal, multiply, is it important
While you have some random numbers for adding, get normal them then multiply them, is it important in finance?
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This is significant in finance because a stock price after a long period can be thought of like its value on several starting day multiplied by many random numbers, each showing a random return. Therefore, whatever the distribution of returns is, the logarithm of the certain stock price will be normally distributed. We tense to suppose that equity returns are normally distributed, and equities, equivalently themselves are lognormally distributed.
Assume Morgan Guaranty, Ltd. is quoting swap rates as follows: 7.75 - 8.10 percent annually against six-month dollar LIBOR for dollars and 11.25 - 11.65 percent annually against six-month dollar LIBOR for British pound sterling. At what rates will Morgan Gua
State the term Option Adjusted Spread? Answer: The OAS stands for Option Adjusted Spread is the constant spread added to a forward or a yield curve to match the mark
Illustrates the way to optimize hedge.
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How is arbitrage argument estimated?
You are trying to save to buy a new $150,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 5.5% annual interest rate on its accounts. How long will it be before you have enough to buy the car?
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What the reason behind invest through investors the lion's share of their funds in domestic securities?Investors invest a lot in their domestic securities since there are significant barriers to investing overseas. The barriers may comprise exce
In integrated world financial market, a financial crisis in a country can be quickly transmitted to other countries, causing global crisis. What sort of measures would you suggest to stop the recurrence of Asia-type crisis? Discover Q & A Leading Solution Library Avail More Than 1413994 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1929938 Asked 3,689 Active Tutors 1413994 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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