Explain the result of volatility structure
Explain the result of volatility structure.
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The resulting volatility structure that never matches actual volatility, and even though exotics are priced consistently this is not clear how to best hedge exotics with vanillas so as to minimize any model error. These concerns seem to carry little weight, because the method is so ubiquitous. As so frequently happens in finance, once a technique becomes popular this is hard to go against the majority. There should be job safety in numbers.
What is the Capital Cash Flow?
If the model could not even find bond prices right, how could this hope to accurately value bond options?
Explain the definition of put–call parity described by Reinach.
How can auditor spot acts of creative accounting? Means let an illustration, the excess of provisions or the non-elimination of intra group transactions along with value added.
Berks Corporation is expecting to have EBIT next year of $12 million, with a standard deviation of $6 million. Berks have $30 million in bonds with coupon of 10%, selling at par, which are being retired at the rate of $2 million annually. Berks also have 100,000 share
There are four methods a company can utilize the money this generates: a) Buying other assets or companies; b) Reducing debt of it; c) Distribute this to shareholders, and d) Increasing cash holdings of it.
Explain the term Option Trading Strategies?
Box Spread: This is another strategy which seeks to exploit the arbitrage opportunities which are available in the market. In case that the options are correctly priced, this strategy would earn only the risk free rate. However, due to existence of im
Is this possible for a company with a positive net income and that does not distribute dividends to get itself in suspension of payments?
Who proposed definition and development of low-discrepancy sequence theory or quasi random number theory?
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