Explain the first method of calibration
Explain the first way of calibration if we can’t measure that parameter.
Expert
Let’s see the first process in action. Examine, possibly, equity data to try to calculate what volatility is. The problem along with it is that this is necessarily backward looking, by using data from the past. It might not be relevant to the future. The other problem with it is that it might give prices which are inconsistent with the market. For illustration, you are interested in buying a certain option. But you think volatility is 27%, therefore you use that number to price the option and the price you determine is $15. Although, the market price of that option is $19. You can either choose that the option is incorrectly priced or which your volatility estimate is wrong.
Explain the government requirements that are imposed on public corporations but not on a private and closely held corporation?
What did you meant by the Value of a Contract? Answer: Value usually implies the theoretical cost of building up a new contract by simpler products, such as replicat
How will Marking to market put some rationality back in trading?
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.
Society's interests can influence financial managers. Explain.
Where is Performance measures used?
Define working capital. What is the main advantage to a corporation by investing some of its funds in working capital?
Explain in brief the accumulated depreciation?
What is Information Ratio?
Explain in brief the non-diversifiable risk and ways to measure it?
18,76,764
1958549 Asked
3,689
Active Tutors
1441189
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!