Explain standard model is the lognormal model
For equities the standard model is the lognormal model, if there are many more ‘standard’ models within fixed income. Does it matter?
Expert
No, not when you are solving the equations numerically, only when you are trying to get a closed-form solution wherein case the simpler the coefficients the more probable you are to get a closed-form solution.
Illustrates an example of Option Adjusted Spread. Answer: Analyses by using Option Adjusted Spreads are common within Mortgage-Backed Securities (MBS).
Explain different types of hedge.
Suppose spot Swiss franc is $0.7000 and the six-month forward rate is $0.6950. Estimate the minimum price which a six-month American call option along with a striking price of $0.6800 must sell for in a rational market? Suppose the annualized six-month Eurod
We focus more on cash flows rather than profits when estimating proposed capital budgeting projects. Explain.
What are Capital Market Line and Market Portfolio?
In brief define each of the major types of international bond market instruments, noting their distinguishing characteristics.The major kind of international bond instruments & their distinguishing characteristics are as follows:
Explain the Probabilistic modelling approach in Quantitative Finance.
Explain the features of Brownian motion.
What are some of the primary advantages and the risks when a corporation has operations in countries other than its home country?
You are trying to save to buy a new $150,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 5.5% annual interest rate on its accounts. How long will it be before you have enough to buy the car?
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