Does LMM stand for
Does LMM stand for? Explain.
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The LIBOR Market Model (LMM), also termed as the BGM or BGM/J model, it is a model for the stochastic evolution of forward interest rates. Its major strength over other interest rate models is that this describes the evolution of forward rates which exist, at market-traded maturities, when opposed to theoretical constructs like the spot interest rate.
In what circumstances would market to book ratios of value be misleading?
Define the term Hedging using implied volatility?
You need to price an option that is paid for within instalments, and you can stop paying and lose the option. Which numerical method should you use?
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Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is expected to Rs. 4000. New plant would increase sales volume by Rs. 40,00
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Discuss the fundamental motivations for a counterparty to enter in a currency swap. One fundamental reason for a counterparty to enter in a currency swap is to exploit the comparative benefit of the other in gaining debt financing at a lower int
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