The tool of Approximations methods in Quantitative Finance
Explain the tool of Approximations methods in Quantitative Finance.
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Approximations: In modelling we intend to come up with a solution representing something useful and meaningful, as an option price. But for the model is really simple, we may not be capable to solve it simply. It is where approximations come in. A complex model may have approximate solutions. These approximate solutions might be good adequate for our purposes.
What are the risks associated with using a large amount of short-term financing for working capital?
What is jump-diffusion model?
Mr. James K. Silber, an avid international investor, only sold a share of Rhone-Poulenc, a French firm, for FF50. The share was bought for FF42 year ago. Now the exchange rate is FF5.80 per U.S. dollar and was FF6.65 per dollar a year ago. Mr. Silber attained
Given: price of Nokia shares on the Helsinki stock exchange=12 euros, exchange rate=$1.3/euro, price of the ADR on the NYSE=$15 and each foreign share translates into 1 ADR. Show the actions you would take to make risk free arbitrage profits.
What are the difference between Capital Asset Pricing Model and Markowitz’s Modern Portfolio Theory?
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Explain: a pre-emptive right protect the interests of existing stockholders.
What is half Kelly?
What are the modern approaches uses for forecast volatility and model?
How does depreciation help in finding out the incremental cash flows?
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