What is financial engineering

Assignment Help Finance Basics
Reference no: EM131017232

Financial Engineering is the application of mathematics and computer programming skills to solve certain problems in finance drawing on tools of statistics, economics, computer science and applied mathematics.

Investment banks, commercial banks, insurance companies, corporate treasuries and regulatory agencies employ financial engineering in USA, Britain and other countries with robust financial markets.

-What is financial engineering.

-What are credit default swaps and their role in the financial crisis/near collapse of 2008?

-Describe the roles of investment bankers, commercial banks, bond credit rating agencies, and Congressional Legislation in the crisis.

-Describe the impact on this entire scenario of the Community Reinvestment Act of 1977.

-Describe what financial leverage is, and its role in leading up to the collapse.

-Describe how investment and commercial banks apply the methods of financial engineering to problems such as (i) new product development, (ii) derivative securities valuation, (iii) portfolio structuring, and (iv) risk management.

Reference no: EM131017232

Questions Cloud

What is the operations component of a typical is department : What are some general strategies employed by organiza- tions to achieve competitive advantage? What is the role of the systems analyst? What is the role of the programmer? What is the operations component of a typical IS department
Find the number of internet users : Does the model underestimate or overestimate the actual number shown by the bar graph for 2006? By how much?
Find what size order pessimistic decision maker would place : Find what size order an optimistic decision maker would place. What size order would you place if you knew from past experience that each demand level is equally likely?
Research paper on media ethics and law : Write 4 page research paper on media ethics and law for the following topic - New York Times v. Sullivan (deals with defamation, actual malice)
What is financial engineering : Describe how investment and commercial banks apply the methods of financial engineering to problems such as (i) new product development, (ii) derivative securities valuation, (iii) portfolio structuring, and (iv) risk management.
What are the major causes of disease and death : What have been some of the strategies implemented to combat these illnesses on the local and national levels? Have they been successful? Include reference citations where appropriate.
What were the major causes of u.s. mortality : What were the major causes of U.S. mortality in the last 100 years, and what public health measures most contributed to improvements in the health of the nation? Include at least two source citations from the readings and/or additional sources to ..
Brief description of issues challenges or trends : Brief description of two issues, challenges, or trends related to the juvenile justice system. Explain how they may impact the juvenile justice in the future
Explain the impact of the benzene decision : Explain what is meant by the term hierarchy of controls, and give an example of each type of control. response should be at least 200 words. with citations

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Calculation of npv and irr and mirr

Calculation of NPV and IRR and MIRR and Profitability Index and Besides future cash flows what other financial criteria would you consider in making your decision between two or more alternatives

  Security structures and enterprise values

Create a scenario of a business that would benefit from using the enterprise method of evaluation. Provide a rationale with your response.

  Duration you have a 9 percent bond with 4 years to

duration. you have a 9 percent bond with 4 years to maturity paid interest annually. its ytm is 10 percent and its

  The firm has $2.0 million debt in market value

Currently, the firm has $2.0 million debt in market value. The corporate tax rate is 40 percent. The following table provides pertinent information concerning the combined financial distress and agency costs associated with different levels of borrow..

  What inflation rate is expected after year 1

f the yield on 3-year Treasury bonds equals the 1-year yield plus 2%, what inflation rate is expected after Year 1?

  Calculating going rate of interest on bonds

Suppose a car company sold an issue of bonds with a 10-year maturity, a $1,000 par value-Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 6%. At what price would the bonds sell?

  How long on average does it take to collect payment

West Coast Sports has total sales of $318,000, cost of goods sold of $241,000, and an average receivables balance of $38,200. How long on average does it take to collect payment from a customer?

  The company expects the project to generate 30000 per year

consider a project that requires a company to invest 100000 today. the company expects the project to generate 30000

  Calculate the dilution in net tangible book value

ABC needs to increase $50 Million by issuing common stock in an IPO. ABC will use the proceeds to pay down 8 percent coupon debt. ABC right now has 20 million shares outstanding representing a book equity interest of 200 million.

  What are the possibilities for arbitrage profits

If there are no transaction costs or taxes what are the possibilities for arbitrage profits and  If there is a transaction cost of .25% per transaction are there still possibilities for arbitrage profits?

  Inefficiencies of market

Suppose your uncle made a killing in the stock market yesterday. This implies that markets are inefficient. Determine the correct answer.

  Find the estimated total costs for a production level

Total costs were $72,200 when 25,000 units were produced and $97,500 when 35,000 units were produced. Use the high-low method to find the estimated total costs for a production level of 32,000 units.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd