Explain the poisson processes
Explain the poisson processes.
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Poisson processes: There are times of high volatility and times of low volatility. It can be modelled by volatility which jumps as per to a Poisson process.
Illustrates that the put–call parity is a model-independent relationship.
Company A is a AAA-rated firm wanting to issue five-year FRNs. It determines that it can issue FRNs at six-month LIBOR + 1/8 percent or at the six-month Treasury-bill rate + ½ percent. Specified its asset structure, LIBOR is the preferred index. Comp
Who concluded that stock prices were unpredictable and coined the phrase ‘market efficiency’?
Suppose today's settlement price on a CME DM futures contract is $0.6080/DM. You have a short position in one contract. Your margin account presently has a balance of $1,700. The next three days' settlement prices are $0.6066, $0.6073, & $0.5989. Compu
Explain stochastic volatility.
How are short or future option margins to be paid at credit risk?
Explain Strong-form efficiency in Efficient Markets Hypothesis.
Who introduced the concept of company’s debt associated to the strike price and the maturity of the debt?
Explain drawbacks of Brownian motion.
discuss the criteria for a good international monetary system
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