Explain the second way of calibration
Explain the second way of calibration if we can’t measure that parameter.
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Another method is to assume, efficiently, that there is information in the market prices of traded instruments. Here in example we ask what volatility we should put in a formula to find the ‘correct’ price of $19. We then utilize that number to price other instruments. There In that case we have calibrated our model to an instantaneous snapshot of the market on one moment in time, quite than to any information by the past.
Security returns are found to be less correlated across countries than in a country. Why can it be?Security returns are less correlated possibly because countries are distinct from each other in terms of industry structure, macroeconomic policie
Explain boundary/final conditions in Monte Carlo method.
factor responsible for surging the international investment portfolio
Businesses spend their time, effort and money in producing forecasts. Explain
Where can be Platinum Hedging Applied?
what are factors responsible for the recent surge in international portfolio investment
What are distinction variables and parameters of Vega Hedging?
foreign countries to finance its current account deficits
Explain the stochastic volatility in an option-pricing.
Explain all mathematical laws under the condition of Central Limit Theorem.
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