Explain what is a Monte Carlo method
Explain what is a Monte Carlo method?
Expert
This method simulates the random behaviour underlying the financial models. Therefore, in a sense they find right to the heart of the problem. Always keep in mind that, while pricing you should simulate the risk-neutral random walks, the value of a contract is then the ordinary present value of all cash flows.
Define the stochastic differential equation with an expression?
State the term GARCH.
Explain the programme of study of Monte Carlo method.
Why is dispersion trading become successful?
Explain valid criticisms of Value at Risk.
Explain in brief about the time value of money?
What is GATT and what is its goal?
Who gave the pricing of options to the simulation of random asset paths?
If a convertible bond has a conversion ratio of 20, a coupon rate of 8 percent, a face value of $1,000 and the market price for the company’s stock is $15 per share, what is the convertible bond’s conversion value?
Explain implied volatility verses strike with a graph.
18,76,764
1949435 Asked
3,689
Active Tutors
1451545
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!