Illustrates an example of jump-diffusion model
Illustrates an example of jump-diffusion model?
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A stock follows the lognormal random walk. In each month you roll a dice. As you roll a one so the stock price jumps discontinuously. The size of its jump is decided through a random number you draw from a hat. It is not a great illustration as the Poisson process is a continuous process, not a quarterly event.
Explain the term copula in current financial crisis.
What is Charmin hedge position?
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Explain exotic or over-the-counter (OTC) contracts.
What will happen when a bank gives discount interest on a loan?
How two stocks fully correlated over short timescales?
Where can we get incomplete markets?
In brief define each of the major types of international bond market instruments, noting their distinguishing characteristics.The major kind of international bond instruments & their distinguishing characteristics are as follows:
What are the ratios that a potential long-term bond investor would be most interested in?
How is a Sharpe ratio maximized? Answer: Choosing the portfolio which maximizes the Sharpe ratio, will provide you the Market Portfolio.
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