Explain an example of superhedging
Explain an example of superhedging.
Expert
A simple illustration of superhedging would be to superhedge a short call position with buying one of the stocks and never rebalancing. Unluckily, as you can probably imagine, and positively as in this illustration, superhedging might provide you prices which differ vastly from the market.
In May 1995, Japan Life Insurance Company invested $10,000,000 in pure-discount U.S. bonds while the exchange rate was 80 yen per dollar. The company liquidated the investment one year afterwards for $10,650,000. The exchange rate turned out 110 yen per dollar
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Explain the term CGARCH as of the GARCH’s family.
Explain the term TGARCH as of the GARCH’s family. Answer: TGARCH: It is threshold GARCH. This is the same
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In integrated world financial market, a financial crisis in a country can be quickly transmitted to other countries, causing global crisis. What sort of measures would you suggest to stop the recurrence of Asia-type crisis? Q : How to submit financial management Give me steps to submit my financial management problems
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How is the implied volatility calculated?
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