Explain the econometric models
Explain the econometric models.
Expert
There is one slight problem along with these econometric models, still. The econometrician develops his volatility models in discrete time, while the option-pricing quant would ideally as a continuous-time stochastic differential equation model. Luckily, in many cases the discrete-time model can be reinterpreted like a continuous-time model (where weak convergence as like the time step gets smaller), and therefore both the econometrician and the quant are happy. Even, of course, the econometric models, being based upon real stock price data, result in a model for the real and not the risk-neutral volatility process. For going from one to the other needs knowledge of the market price of volatility risk.
Who said, merger doesn’t create more risk?
Explain different approaches to modelling in Quantitative Finance.
what would it cost an insurance company to replace a family's personal property that originally cost $18,000? the replacement costs for the items have increased 15 percent.
Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the vlaue of its current stock price? Assuming that the discount rate is 10%.{Hint: pages 84-
Illustrates an example of Frechet distribution?
Illustrates the formula of Rho for the foreign exchange option value?
What will an investment banker do while underwriting a new security issue for a corporation?
Illustrates an example of complete and incomplete markets?
Who proposed the probabilistic approach based on copulas?
What is Crash Metrics?
18,76,764
1954000 Asked
3,689
Active Tutors
1452902
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!