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.
The AB Corp stock has a β of 1.15 and it will pay a dividend of $2.50 next year. The expected rate of return of the market is 17% and the current riskless rate is 9%. The expected rate of progress of AB is 4%. Find the value of its common stock.
Explain merits and demerits of standard market practice to find the volatility as a function of underlying.
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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
What did ‘better’ mean specified with Markowitz questioned regarding portfolio selection?
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Financial Management: It means organizing, planning, directing and controlling the financial activities like procurement and use of funds of enterprise. This means exerting general management principles to the financial resources of enterprise. <
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
What are Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)?
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