What is volatility in finance
What is volatility in finance?
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Here volatility is uncertain, is permitted to lie within a given range, but the probability of volatility having any value is not specified. Instead of working along with probabilities we here work with worst-case scenarios. Therefore uncertainty is more related with the idea of stress-testing portfolios.
factor responsible for surging the international investment portfolio
You need to price a fixed-income contract by using the BGM model. Which numerical method should you use?
Describe the long position in an options contract?An option is a contract giving the long the right to buy or sell a given quantity of an asset at a particular price at some time in the future, however not enforcing any obligation on him if the
Why Does Risk-Neutral Valuation Work?
How must you hedge discretely?
Illustrates an example of delta hedging.
Why should we assume a deterministic stock price path for an equity option? Answer: Because the forward rate curve is not uniquely determined through the finite set
Question1) Why is money demanded? Explain how Keynesian approach different from the classical approach in this regard?
Criticize the flexible exchange rate regime from the point of view of the proponents of the fixed exchange rate regime. If exchange rates are randomly fluctuating, that may discourage international trade and suppor
Tabulate the advantages of the flexible exchange rate regime. The advantages of the flexible exchange rate system comprise: (I) automatic attainment of balance of payments equilibrium and (ii) maintenance of national policy autonomy.
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