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.
Explain Capital Asset Pricing Model returns on individual assets and Arbitrage Pricing Theory returns on investments.
Explain identical distributions required or not in the central limit theorem.
Determine the efficiency of Numerical integration?
Describe basic objectives of the Bretton Woods system?The basic objectives of the Bretton Woods system are to attain exchange rate stability and promote international trade & development.
Explain all the model and experiments of Robert Merton.
Describe Gresham’s Law.This law refers to the phenomenon that bad (abundant) money drives good (scarce) money out of circulation. This sort of phenomenon was frequently observed under the bimetallic standard under which gold and silver bot
Why cash flows and accounting profits are not considered the same thing.
What is rehedging the portfolio?
Suppose current settlement price on a CME DM futures contract is $0.6080/DM. You contain a long position in futures contract. Presently your margin account contain a balance of $1,700. The next three days' settlement prices are $0.6066, $0.6073, & $0.598
In what circumstances would market to book ratios of value be misleading?
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