--%>

The tool of Series solutions in Quantitative Finance

Explain the tool of Series solutions in Quantitative Finance.

E

Expert

Verified

Series solutions: If your equation is linear and they mostly all are in quantitative finance then you might be capable to solve a particular problem with adding together the solutions of many problems. Series solutions are while you decompose the solution in a (potentially infinite) sum of simple functions, as cosines and sines, or a power series. It is the case, for illustration, with barrier options consisting of two barriers, one below the current asset price and another above.

   Related Questions in Financial Management

  • Q : How is hedging optimized when

    How is hedging optimized when transaction costs are there?

  • Q : Explain the tool of Discretization

    Explain the tool of Discretization methods in Quantitative Finance.

  • Q : Describe the forward cross-rates in

    Calculate the 30-, 90-, & 180-day forward cross exchange rates among the German mark and the Swiss franc by using the most current quotations. Describe the forward cross-rates in "German" terms. The formulas we desire to use are:     &n

  • Q : Difference between two tier market for

    Describe difference between the retail or client market and the wholesale or interbank market for foreign exchange?The market for foreign exchange can be distinguished as two-tier market. One tier is the wholesale or interbank market and the ot

  • Q : Riskiness of portfolios The riskiness

    The riskiness of portfolios should be looked at in a different way than the riskiness of individual assets. Explain.

  • Q : Help me Staind, Inc., has 7 percent

    Staind, Inc., has 7 percent coupon bonds on the market that have 13 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 11 percent, what is the current bond price?

  • Q : Difference in cash budget and pro forma

    Explain the dissimilarities in a cash budget and pro forma financial statements? Why pro forma financial statements are not utilized to forecast cash requirements.

  • Q : Significance of the term additional

    What is the significance of the term additional funds needed?

  • Q : Calculate annual mortgage payment

    Question 1 You just took out a variable-rate mortgage on your new home. The mortgage value is $100,000, the term is 30 years, and initially the interest rate is 8%. The interest rate is fixed for

  • Q : Described advantages and disadvantages

    Described the advantages & disadvantages of the gold standard. The advantages of the gold standard comprise: (I) as the supply of gold is limited, countries cannot comprise high inflation; (2) any BOP disequili