Explain simple and complicated formula of value at risk
Explain the difference between simple and complicated formula of value at risk.
Expert
The difference in between complicated and simple is essentially the difference among portfolios without derivatives and those with. If your portfolio only consists of linear instruments then computation involving normal distributions and standard deviations, all is done analytically. This is also the case when the time horizon is short therefore derivatives can be approximated through a position of delta in the underlying.
Explain marked to market by using the implied volatility.
Society's interests can influence financial managers. Explain.
Why would it be useful to inspect a country's balance of payments data?It would be useful to inspect a country's BOP for at least two reasons. Firstly, BOP provides detailed information regarding the supply & demand of the country's currency
How approximately is future profit calculated?
Your firm have just issued five year floating-rate notes indexed to six-month U.S. dollar LIBOR plus 1/4%. Describe the amount of first coupon payment your firm will pay per U.S. $1,000 of face value, if six-month LIBOR is at present 7.2%?Solution:
Who explained the credit instruments explosion?
Illustrates an example of dispersion trading?
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
Suppose a currency swap wherein two counterparties of comparable credit risk each borrow at the best rate obtainable, yet the nominal rate of one counterparty is greater than the other. After the primary principal exchange, is the counterparty i.e. required t
Grecian Tile Manufacturing of Athens, Georgia borrows $1,500,000 at LIBOR and a lending margin of 1.25 percent per annum on six-month rollover basis through London bank. If six-month LIBOR is 4 ½ percent in the first six-month interval and 5 3/8 percent over the second six-mo
18,76,764
1939580 Asked
3,689
Active Tutors
1456226
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!