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 any benefits you can think of for any company to cross-list its equity shares on more than one national exchange?A MNC that has a product market presence or manufacturing facilities in many countries may cross-list its shares on the exch
Elaborate the statement: Coefficient of variation is a better risk calculator to use than the standard deviation when estimating the risk of capital budgeting projects.
Explain different approaches to modelling in Quantitative Finance.
How do flotation costs affect the cost of raising the capital when a company issues new securities?
Who were solved out stochastic spot rate models problem?
Which is the most conservative kind of working capital financing plan a company can implement? What are the main reasons that firms hold cash?
What is Crash (Platinum) hedging?
What is MCC (marginal cost of capital schedule)? The schedule is always a horizontal line. Elaborate.
Is it possible for a company with a positive net income and which does not distribute dividends to find itself in suspension of payments?
18,76,764
1958892 Asked
3,689
Active Tutors
1433135
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!