Why classical option pricing required
Why classical option pricing with constant volatility required?
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This model is required that can correctly price vanilla contracts, and after that price exotic contracts consistently.
Stock exchanges: A stock exchange provides services useful for trading, issue and redemption of shares and other securities for traders and brokers. They will also provide facility for payment of income and dividends for listed securities. Securities
Explain merits and demerits of standard market practice to find the volatility as a function of underlying.
You have just been hired as the branch manager for a big bank in XYZ. You were told that the bank is going to open a new branch at Island Learning Centre of the Open University of XYZ. The management of the bank is much concerned that the new branch might not be able
Stock variable: It is a variable whose value is measured or evaluated at a point of time.
Tudor Online Publishing Corporation has tax rate of 35%, debt-to-equity ratio of 25%, and has (leveraged) beta 1.25. The riskless rate is 3% and the market return is 12%. Windsor Publishing Company is an all equity company and is in the same business. What is the requ
Explain useful properties of low-discrepancy sequence theory or quasi random number theory.
Which parameter good measures value creation; the Economic Value Added (EVA), the CVA (Cash Value Added) or the economic profit?
How can optimal capital structure be calculated?
When you take out an $8,000 car loan that calls for 48 monthly payments of $225 each, then what is the APR of loan?
Butterfly Spread Strategies: In this strategy, there is no limit on the number of options that can be combined to form the butterfly spread. This strategy essentially combines both the bear spread and the bull spread. In this case, options with three
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