Who explain short-term interest rate by a stochasti
Who illustrated short-term interest rate through a stochastic differential equation?
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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.
A risk-adjusted discount rate improves capital budgeting decision making compared to using a single discount rate for all projects. Explain.
How are financial or economic variable represented by index?
Provide three examples of mutually exclusive projects.
What is the matching principle of working capital financing and also explain the benefits of following this principle.
according to decision theory approach ,which is the core of management
In order for a derivatives market to function two kind of economic agents are required: hedgers & speculators. Describe.Two kinds of market participants are essential for the operation of a derivatives market: speculators & hedgers.
What is Vanna in option value?
How is a portfolio optimized for the greatest expected return in a prescribed risk level?
Explain The characteristic of perceiver and perceived
What are the time dimensions of the balance sheet, the income statement and the statement of cash flows?
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