Define an example to Hedge
Define an example to Hedge?
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You buy a call option, this could go up or down in value depending upon whether the underlying goes up or down. Therefore now sell some stock short. When you sell the right amount short then any rises or falls in the stock position will balance the falls or increases in the option, decreasing risk.
What are Finite-difference methods?
Who illustrated short-term interest rate through a stochastic differential equation?
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
Explain the term TGARCH as of the GARCH’s family. Answer: TGARCH: It is threshold GARCH. This is the same
What are possible ways of marking exotic or over-the-counter contracts?
Describe balance of payments identity and explain its implication under the fixed & flexible exchange rate regimes.The balance of payments identity holds that the combined balance on the current & capital accounts have to be equivalent i
What are the primary variables being balanced in the EOQ inventory model?
Explain the commonsense criteria that of a measure of risk.
Explain marking to market will put some rationality back in trading.
What is Attribution?
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