Explain the tool of Discretization methods
Explain the tool of Discretization methods in Quantitative Finance.
Expert
Discretization methods: The complement to simulation methods, and there are several types of such. The best identified are the finite-difference methods which are discretizations of continuous models that Black–Scholes. Depending upon the problem you are solving, and unless it’s extremely simple, you will probably descend the simulation or finite-difference routes for your crunching number.
Describe the concept of the world beta of a security.The world beta measures the sensitivity of returns to security to returns to the world market portfolio. This is a measure of the systematic risk of the security in global setting. Statistically, the world beta can be des
Why is dispersion trading become unsuccessful?
We focus more on cash flows rather than profits when estimating proposed capital budgeting projects. Explain.
Illustrates an example of complete market with volatility?
Society's interests can influence financial managers. Explain.
What is rehedging the portfolio?
Suppose spot Swiss franc is $0.7000 and the six-month forward rate is $0.6950. Estimate the minimum price which a six-month American call option along with a striking price of $0.6800 must sell for in a rational market? Suppose the annualized six-month Eurod
Normal 0 false false
Explain the first way of calibration if we can’t measure that parameter.
The discussion of zero-coupon bonds in the text gave an instance of two zero-coupon bonds issued through Commerzbank. The DM300, 000,000 issues due in the year of 1995 sold at 50 percent of face value and the DM300, 000,000 due in the year of 2000 sold a
18,76,764
1933781 Asked
3,689
Active Tutors
1446520
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!