What is interest-rate model
What is interest-rate model?
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Interest-rate model is a model for a forward rate and its volatility, both of that are stochastic, this model is termed as a SABR (stochastic, α, β, ρ) model.
Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the vlaue of its current stock price? Assuming that the discount rate is 10%.{Hint: pages 84-
Explain the term FIGARCH as of the GARCH’s family.
Suppose you are the swap bank in the Eli Lilly swap. Create an example of how you might lay off the swap to an opposing counterparty.The swap bank may attempt to lay off the swap on Japanese MNC which has issued yen denominated debt to finance
Explain the Simulations tool in Quantitative Finance.
You are an investment banker advising a Eurobank regarding a new international bond offering it is considering. The proceeds are to be utilized to fund Eurodollar loans to bank clients. What sort of bond instrument would you suggested that the bank consi
Explain Capital Asset Pricing Model (CPM).
How is Sharpe ratio calculated?
How does depreciation help in finding out the incremental cash flows?
Why are most futures positions closed out through a reversing trade instead of held to delivery?In forward markets, about 90 percent of all contracts that are primarily established result in the short making delivery to the long of the asset und
What are retained earnings? Why are they important?
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