Who explain short-term interest rate by a stochasti
Who illustrated short-term interest rate through a stochastic differential equation?
Expert
Oldrich Vasicek illustrated the short-term interest rate through a stochastic differential equation of the form:
dr = µ(r, t) dt + σ(r, t) dX.
The bond pricing equation is a parabolic partial differential equation, same to the Black–Scholes equation.
What are the primary variables being balanced in the EOQ inventory model?
Explain the dissimilarities in a cash budget and pro forma financial statements? Why pro forma financial statements are not utilized to forecast cash requirements.
Suppose spot Swiss franc is $0.7000 and the six-month forward rate is $0.6950. Estimate the minimum price which a six-month American put option along with a striking price of $0.6800 must sell for in a rational market? Suppose the annualized six-month Eurodo
Explain the tool of Series solutions in Quantitative Finance.
Describe the advantages of investing by international mutual funds? The advantages of investing by international mutual funds comprise: (1) save transaction/information costs,
Describe basic objectives of the Bretton Woods system?The basic objectives of the Bretton Woods system are to attain exchange rate stability and promote international trade & development.
What is the Capital Asset Pricing Model?
Illustrates an example of jump-diffusion model?
Determine the efficiency of Monte Carlo method.
Give an example of different types of mathematics found in Quantitative Finance?
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