What are different volatilities in vanilla equity option
What are different volatilities in vanilla equity option?
Expert
Take the easy case of a vanilla equity option bought since it is considered inexpensive. There are potentially three various volatilities as: implied volatility; hedging volatility and forecast volatility.
Illustrates an example of probabilities in a simple coin-tossing experiment.
How is estimate of volatility or the implied volatility used?
Assume that the treasurer of IBM contains an extra cash reserve of $1,000,000 to invest for six months. The six-month interest rate is 8% per annum in the U.S. and 6% per annum in Germany. Now, the spot exchange rate is DM1.60 per dollar and the six-month forw
Illustrates a case of a static arbitrage and model-independent arbitrage?
Can I employ real probabilities for pricing derivatives? Answer: Yes you can. But you may require moving away from classical quantitative finance.
Normal 0 false false
Illustrates an example of complete and incomplete markets?
Mr. Ross Perot, a former Presidential candidate of the Reform Party, that is a third political party in the United States, had objected strongly to the creation of the North American Trade Agreement (NAFTA), that nonetheless was inaugurated in the year of 1994
the criteria for a good international financial or monetary system
18,76,764
1960442 Asked
3,689
Active Tutors
1438850
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!