Explain experiment of Vasicek of short-term interest rate
Explain the experiment of Oldrich Vasicek of short-term interest rate.
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Oldrich Vasicek modelling a short-term interest rate like a random walk and concluded as interest rate derivatives could be valued by using equations the same to the Black–Scholes partial differential equation.
Who explained SABR model?
Explain an example of Brownian motion, where it is used.
What is Maximum Likelihood Estimation?
Illustrates an example of forward equation?
How can a financial manager decide whether to accept or to reject proposed capital budgeting projects for a given MCC and IOS?
Explain the programme of study of finite differences.
Which is lesser for a particular company: the cost of equity or the cost of debt (ignoring taxes)? Explain.
What is a Coherent Risk Measure?
In order for a derivatives market to function two kind of economic agents are required: hedgers & speculators. Describe.Two kinds of market participants are essential for the operation of a derivatives market: speculators & hedgers.
What is a Wiener Process/Brownian Motion?
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