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.
Determine the efficiency of finite differences?
Explain finite-difference method in finance.
What are different volatilities in vanilla equity option?
Explain the term Modigliani–Modigliani measure.
What is Kelly Fraction? Explain.
When we can use Numerical quadrature numerical method?
What are Finite-difference methods?
Categorize the issues of Knight.
What are uses of Poisson Process in Finance?
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