Explain the result of volatility structure
Explain the result of volatility structure.
Expert
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.
Does the book value of the debt all the time coincide with its market value?
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of whichrequire semiannual interest payments. Bond A has a coupon rate of 4.0%; a price qu
what are the objectives of international finance
Brushy Mountain Mining Company's ore reserves are being depleted, so its sales are falling. Also, its pit is getting deeper each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 5% per year. I
I suppose that a valuation consciously realized in my name tells me how much I have to offer for the company, am I right?
What is the difference between weighted return and simple return to shareholders?
Is there any consensus among the chief authors in finance concerning the market risk premium?
Stock exchanges: A stock exchange provides services useful for trading, issue and redemption of shares and other securities for traders and brokers. They will also provide facility for payment of income and dividends for listed securities. Securities
The dividend is the part of the net income which the company distributes to shareholders. When the dividend shows real money, the net income is also real money. Is it true?
Working capital requirement: Is a financial term known as WCR, which is used to judge the operational liquidity of the business and it is a part of operational capital. A firm in spite of having a good profitability and assets may not have a good liqu
18,76,764
1942400 Asked
3,689
Active Tutors
1434843
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!