An example of distribution of individual or random numbers
Illustrates an example of distribution of individual numbers or random numbers.
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Play a dice game, here you win $10 when you throw a six, but lose $1 when you throw anything else. Therefore distribution of your profit after one coin toss is obviously not normal, it’s skewed and bimodal, but when you play the game thousands of times your total net profit will be around normal.
Define the steps of getting governing equation of Girsanov’s Theorem?
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
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
Explain the Simulations tool in Quantitative Finance.
Explain sunk cost and it relevant when evaluating a proposed capital budgeting project? Explain.
factors of the growth of the margin market in recent years
Describe how exchange rate fluctuations influence the return from a foreign market measured in dollar terms. Describe the empirical evidence on the effect of exchange rate uncertainty on the risk of foreign investment.Mostly exchange rate fluctu
How many prices have in practice option for put–call parity?
Which factors are important when implementing a Monte Carlo Method?
What is cardinal utility?
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