Explain static arbitrage and model-independent arbitrage
Illustrates a case of a static arbitrage and model-independent arbitrage?
Expert
We as set up a portfolio which gave us an immediate profit, and such portfolio did not have to be touched till expiration. It is a case of a static arbitrage. The other special feature of the above illustration is that this does not rely on any assumptions regarding how the stock price behaves. So the illustration is that of model-independent arbitrage.
Though, when deriving the famous option-pricing models we rely upon a dynamic strategy, termed as delta hedging, wherein a portfolio consisting of an option and stock is constantly adjusted through purchase or sale of stock in a very specific way.
Explain The characteristic of perceiver and perceived
Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is expected to Rs. 4000. New plant would increase sales volume by Rs. 40,00
Explain why we measure a project’s risk as the change in the CV.
A corporation can have too much working capital. Explain. Explain how can a firm estimate the optimal level of current assets.
Explain some examples of mutually exclusive projects.
Alpha and Beta Companies can borrow at the below given rates. &nb
Why a different type of mathematics in Quantitative Finance is important?
what are the time dimensions of time income statement, the balance sheet, and the statement of cash flow?
1)What 3 items of important information does the income statement reveal about the financial performance of the company over the last three years?
the limitation in the process of financial planning
18,76,764
1948030 Asked
3,689
Active Tutors
1418883
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!