Mathematical laws under condition of Central Limit Theorem
Explain all mathematical laws under the condition of Central Limit Theorem.
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Conditions under the Central Limit Theorem are as follows. • The random numbers should all be drawn from similar distribution• The draws should all be independent• The distribution should have standard deviation and or interest rates.
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Explain all facts regarding the Black–Scholes equation.
Illustrates an example of dispersion trading?
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When we can use Monte Carlo numerical method?
What is interest-rate model?
Explain the deterministic volatility in an option-pricing.
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