Is the Black–Scholes formula correct
Is the Black–Scholes formula correct?
Expert
The Black–Scholes formula is not correct, if volatility is not constant. Again, here is the small caveat which the Black–Scholes formula can work when volatility is a known deterministic time function.
Explain all mathematical laws under the condition of Central Limit Theorem.
What are Uses of Wiener Process/Brownian Motion in Finance? Answer: This is the most common stochastic building block for random walks within finance.<
What is dynamically hedge?
Describe the name of volatilities.
How is hedging requirement decreased by a gamma-neutral strategy?
Describe Gresham’s Law.This law refers to the phenomenon that bad (abundant) money drives good (scarce) money out of circulation. This sort of phenomenon was frequently observed under the bimetallic standard under which gold and silver bot
What happens if the correlation coefficient for two variables is -1 or 0 or +1?
Briefly discuss some services which international banks provide their customers & the market place.International banks can be considered by the sort of services they provide that distinguish them from domestic banks. Foremost, internat
factor responsible for surging the international investment portfolio
In integrated world financial market, a financial crisis in a country can be quickly transmitted to other countries, causing global crisis. What sort of measures would you suggest to stop the recurrence of Asia-type crisis? Discover Q & A Leading Solution Library Avail More Than 1435747 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1954598 Asked 3,689 Active Tutors 1435747 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
18,76,764
1954598 Asked
3,689
Active Tutors
1435747
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!