--%>
Assignment Help - homework help

What is Rho for the foreign exchange option value

What is Rho for the foreign exchange option value?

E

Expert

Verified

Rho: ρ, it is the sensitivity of the option value to the interest rate utilized in the Black–Scholes expression.

   Related Questions in Financial Management

  • Q : Appraisal of AFEP and CNPF In the year

    In the year of 1995, a working group of French chief executive officers was set up by the French Association of Private Companies (AFEP) and Confederation of French Industry (CNPF) to study the French corporate governance structure. The group reported the prov

    		•
  • Q : What are the difficulties GARCH

    What are the difficulties GARCH contained?

    		•
  • Q : How is hedging optimized when

    How is hedging optimized when transaction costs are there?

    		•
  • Q : Unbiased predictor of the future spot

    Normal 0 false false

  • Q : BEP From books of Aggarwal Bors,

    From books of Aggarwal Bors, following information has been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is e

    		•
  • Q : Mutually exclusive projects Provide

    Provide three examples of mutually exclusive projects.

    		•
  • Q : Compensating balances Explain the term:

    Explain the term: compensating balances and why do banks require compensating balances from some customers?  When can a bank impose compensating balances?

    		•
  • Q : Problem related to margin account

    Suppose today's settlement price on a CME DM futures contract is $0.6080/DM. You have a short position in one contract. Your margin account presently has a balance of $1,700. The next three days' settlement prices are $0.6066, $0.6073, & $0.5989. Compu

    		•
  • Q : Illustrates an example of forward

    Illustrates an example of forward equation?

    		•
  • Q : Positive interest rates on bonds in a

    Would there be positive interest rates on bonds in a world with absolutely no risk (no default risk, maturity risk, and so on)? Why would a lender demand and a borrower be willing to pay, a positive interest rate in such a no risk world?

    		•