The volatility effect in an option-pricing
What are the ways to build-up the volatility effect in an option-pricing?
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There are several ways to build the volatility-smile effect in an option-pricing model, and even have no arbitrage. The most admired are, in order of complexity, given below: deterministic volatility surface, stochastic volatility and Jump diffusion.
Determine the efficiency of Monte Carlo method.
Explain maintenance of future and option margins.
Explain the second way of calibration if we can’t measure that parameter.
Explain deterministic model.
Question 1 Four European vanilla Call options Ci ( ⋅) on an underlier with no interim cash flows, have identicalmaturity T . Their strike prices K i are such that K1 < K 2 < K 3 < K 4 and all strikes are equallyspaced. Interest rates are equ
What is volatility in finance?
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What is Crash (Platinum) hedging?
State the term GARCH.
What is trustworthy collateral from the lender's perspective? Explain whether accounts receivable and inventory are trustworthy collateral.
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