How is estimate of volatility or the implied volatility used
How is estimate of volatility or the implied volatility used?
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When you hedge options you have to select whether to utilize a delta based on your own estimate of volatility or the implied volatility. If you need to ignore fluctuations in your mark-to-market P and L you will hedge by using the implied volatility, even if you may believe this volatility to be incorrect.
Which is the deciding factor for rejecting or accepting proposed projects while using internal rate of return?
Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 11%. They had 20-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 37% Preferred stock: Two thousand shares of preferred are outstanding,
Explain various explanations regarding risk-neutral pricing.
what are the factors resposible for the recent surge in international portfolio investment?
Do option traders use the Black–Scholes formula?
When you add random numbers and get normal, what occurs when you multiply them?
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Explain the term implied volatility in Black–Scholes option-pricing equation.
Example of Forward and Backward Equations.
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