Example of Forward and Backward Equations
Example of Forward and Backward Equations.
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1.88 is an exchange rate currently. What is the probability that this will be over 2 by it time next year? For this exchange rate when you have a stochastic differential equation model then such question can be answered by using the equations for the transition probability density function.
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Describe necessary condition for a fixed-for-floating interest rate swap to be possible?For fixed-for-floating interest rate swap to be possible it is essential for a quality spread differential to be present. Generally, the default-risk premiu
Give any benefits you can think of for any company to source new equity capital from foreign investors in addition to domestic investors. An enhancement in demand will normally increase the stock price and develop
Explain another way of interpreting put–call parity.
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How are normal distributions with mean and standard deviation in a given period shown?
Explain all mathematical laws under the condition of Central Limit Theorem.
What is deterministic spot rate function?
what are the factors resposible for the recent surge in international portfolio investment?
Why is dispersion trading become successful?
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