Example of Forward and Backward Equations
Example of Forward and Backward Equations.
Expert
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.
foreign countries to finance its current account deficits
When ROE can be calculated in a simple way then why an analyst would use the Modified Du Pont system to calculate ROE. Explain.
Explain the deterministic volatility in an option-pricing.
Explain any benefits you can think of for any company to cross-list its equity shares on more than one national exchange?A MNC that has a product market presence or manufacturing facilities in many countries may cross-list its shares on the exch
What is implied volatility? Answer: Implied volatility is number into the Black–Scholes formula which makes a theoretical price equal a market price.
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
Security returns are found to be less correlated across countries than in a country. Why can it be?Security returns are less correlated possibly because countries are distinct from each other in terms of industry structure, macroeconomic policie
Differentiate between compound interest and discounting.
Illustrates an example of GARCH.
In which measurement semi-variance mathematical definition of risk is used?
18,76,764
1932387 Asked
3,689
Active Tutors
1451276
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!