Why is Vomma/Volga measures convexity
Why is Vomma/Volga measures convexity?
Expert
Because of Jensen’s Inequality, while volatility is stochastic the Vomma/Volga measures convexity because of random volatility and therefore gives you a concept of how much to add or subtract by an option’s value.
Who described the criteria which make a risk measure coherent?
How does AR (accounts receivable) factoring work? What are the risks and benefits to the two parties involved?
Security returns are found to be less correlated across countries than in a country. Why can it be?Security returns are less correlated possibly because countries are distinct from each other in terms of industry structure, macroeconomic policie
Based on the information below, calculate the weighted average cost of capital. Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 10%. They had 25-year terms and $1,000 face values. They are now selling to yield 9%. Th
Illustrates an example of binomial model as complete market?
Does High operating leverage mean high business risk. Elaborate the statement.
Explain: a pre-emptive right protect the interests of existing stockholders.
What is bird in the hand theory of cash dividends?
Explain the term Boundary/final conditions in finite-difference methods.
You need to price an option that is paid for within instalments, and you can stop paying and lose the option. Which numerical method should you use?
18,76,764
1954972 Asked
3,689
Active Tutors
1449210
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!