Explain linear or non-linear in Monte Carlo method
Explain linear or non-linear in Monte Carlo method.
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Linear or non-linear: Well simulation methods also cope poorly along with non-linear models. Several models just don’t have a useful interpretation in terms of expectations and probabilities therefore you wouldn’t expect them to be amenable to solution with methods based on random simulations.
Define the term pricing derivatives in Monte Carlo simulations.
How is Poisson process defined?
What is the Volatility Smile?
Give an example of worst-case scenarios and uncertainty?
What is an option price?
What is Crash Metrics?
Explain stochastic volatility.
List the arguments (variables) of which a FX call or put alternative model price is a function. How does the call & put premium change w.r.t. alteration in the arguments?Both call & put options are functions of just six variables: S
How is Vega completely different from Greeks?
Describe the sales forecasting process.
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