--%>

Explain functional form of coefficient in Monte Carlo method

Explain functional form of coefficients in Monte Carlo method.

E

Expert

Verified

Functional form of coefficients: As along with the finite-difference methods it doesn’t issues too much what the volatility and drift functions are in practice, because you won’t be looking for closed-form solutions.

   Related Questions in Financial Management

  • Q : Straight Supply Can I get the answers

    Can I get the answers for straight supply?

  • Q : How must you hedge discretely How must

    How must you hedge discretely?

  • Q : Define working capital Define working

    Define working capital. What is the main advantage to a corporation by investing some of its funds in working capital?

  • Q : What is the Volatility Smile What is

    What is the Volatility Smile?

  • Q : Compute the Quality Spread Differential

    Alpha and Beta Companies can borrow at the below given rates.                                  &nb

  • Q : Fin 6000 A firm is evaluating two

    A firm is evaluating two mutually exclusive projects that have unequal lives. Evaluate the projects using the equivalent annual annuity approach (EAA), recommend which project they should select. The firm's cost of capital has been determined to be 18 percent, and the projects have the following i

  • Q : Describe the concept of the Sharpe

    Describe the concept of the Sharpe performance measure.The Sharpe performance measure (SHP) is a risk-adjusted performance measure. This is describing as the mean excess return to portfolio above the risk-free rate divided by the portfolio's sta

  • Q : Question on Fiat trades and ADR At

    At Milan bourse, Fiat stock closed at EUR31.90 per share on Friday, September 10, 1999. Fiat trades as & ADR on the NYSE. One underlying Fiat shares equivalent one ADR. On September 10, the $/EUR spot exchange rate was $1.0367/EUR1.00. At this exchange

  • Q : Arbitrage Given: price of Nokia shares

    Given: price of Nokia shares on the Helsinki stock exchange=12 euros, exchange rate=$1.3/euro, price of the ADR on the NYSE=$15 and each foreign share translates into 1 ADR. Show the actions you would take to make risk free arbitrage profits.

  • Q : Explain the term copula in current

    Explain the term copula in current financial crisis.