--%>

Explain merits and demerits of standard market practice

Explain merits and demerits of standard market practice to find the volatility as a function of underlying.

E

Expert

Verified

On the plus side, it is not too difficult to do in theory. But on the minus side, the practice is much harder, the sought volatility function depending extremely sensitively upon the initial data. From a scientific view point there is much to be said against the methodology.

   Related Questions in Corporate Finance

  • Q : Strategy of Bull Spread State when

    State when market is expected to go up then what is the Strategy of Bull Spread?

  • Q : What is Financial Analysis Financial

    Financial Analysis: It is the investigation and interpretation of financial statements and associated financial reports. Trained and certified accountants generally complete this kind of analysis. The role of a financial analyst is to

  • Q : Calculate valuation realized by

    Is a valuation realized through a prestigious investment bank a scientifically approved result that any investor could utilize as a reference?

  • Q : Explain few Spanish mutual funds

    Is this true that very little Spanish mutual funds outperform their benchmark? Isn’t this strange?

  • Q : What impacts have on value of a

    What impacts have on the value of a business of high inflation?

  • Q : Problem on rules of the International

    RainFlower Trading Limited is a wholesaler of electronic calculators in Hong Kong. It has been importing goods from a Philippine manufacturer for eight years. The Philippine manufacturer had accepted payments in advance in the past. Recently, because of political turm

  • Q : Is ROE a correct measurement of return

    The ROE is the ratio among net income and Shareholders’ equity. The meaning of Return on Equity is return to shareholders. Therefore, is ROE a correct measurement of the return to shareholders?

  • Q : Who explained market-neutral delta

    Who explained market-neutral delta hedging?

  • Q : What is optimal capital structure What

    What is optimal capital structure?

  • Q : State Transition Management Transition

    Transition Management: It is a financial service accessible to institutional investors who require making significant modifications to their portfolios, like merging, selling, or substantially restructuring them. This procedure can expose investors to