How is quantity of model risk dependency on vega hedge
How is quantity of model risk dependency on vega hedge?
Expert
As along with gamma hedging, one can vega hedge to decrease sensitivity to the volatility. It is a main step towards eliminating several model risks, because it reduces dependence upon a quantity that is not known very accurately.
State the term dispersion trading?
Where can we get incomplete markets?
Explain The characteristic of perceiver and perceived
Define working capital. What is the main advantage to a corporation by investing some of its funds in working capital?
What is super hedging?
Illustrates an example of Option Adjusted Spread. Answer: Analyses by using Option Adjusted Spreads are common within Mortgage-Backed Securities (MBS).
Explain asymptotic analysis in interest rate model.
What is Volatility? Answer: It is annualized standard returns’ deviation.
Explain valid criticisms of Value at Risk.
Illustrates an example an arbitrage opportunity?
18,76,764
1942061 Asked
3,689
Active Tutors
1446398
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!