Explain Girsanov’s Theorem in briefly
Explain Girsanov’s Theorem in briefly.
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First a statement of the Girsanov’s theorem. Assume that Wt be a Brownian motion with measure P and sample space ?. If γt is a pre-visible process satisfying the constraint EP
then there exists an equivalent measure Q on ? therefore
is a Brownian motion.
Explain the term TGARCH as of the GARCH’s family. Answer: TGARCH: It is threshold GARCH. This is the same
Categorize the issues of Knight.
How must you hedge discretely?
What is the Theta in option value?
What is the significance of the term additional funds needed?
You need to price a fixed-income contract by using the BGM model. Which numerical method should you use?
Stock price is $98; and European call option struck at $100 along with an expiration of nine months has a value of $9.07. There nine-month, compounded continuously, interest rate is 4.5%. So find out the value of the put option with the same strike and expirat
Society's interests can influence financial managers. Explain.
Illustrates the way to optimize hedge.
Define an example of a Quant and an Actuary.
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