Explain an example of finite-difference method
Explain an example of finite-difference method.
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Several financial problems can be cast as partial differential equations. Generally these cannot be solved analytically and so they should be solved numerically.
Assume you are a euro-based investor who just sold Microsoft shares which you had bought six months ago. You had invested 10,000 euros to purchase Microsoft shares for $120 per share; the exchange rate was $1.15 per euro. You sold the stock for $135 per share
The discussion of zero-coupon bonds in the text gave an instance of two zero-coupon bonds issued through Commerzbank. The DM300, 000,000 issues due in the year of 1995 sold at 50 percent of face value and the DM300, 000,000 due in the year of 2000 sold a
Explain the term: annuity. How can continuous compounding benefit an investor?
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
Explain the validity in various forms of Efficient-market hypothesis.
What are the ways to choose the members of the board of directors of a corporation? Who do these board members owe their primary allegiance?
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What are a callable bond and a putable bond? How can each of these bonds affect their market interest rates?
Alpha and Beta Companies can borrow at the below given rates. &nb
Explain the term implied volatility in Black–Scholes option-pricing equation.
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