Mathematical theory in otc, Basic Statistics

Assignment Help:

All parts should be answered as briefly as possible (quality not quantity!). A few sentences will suffice. Just get your opinions across succinctly. Unnecessarily long answers will be penalised.

a) Why do companies buy Over The Counter derivatives (OTC)?

b) In your opinion, what should the bank's objective be when coming up with a price for the OTC derivatives?

c) In your opinion, how should banks come up with an OTC derivative price which meets this objective?

d) In your opinion, does the mathematical theory help achieve this? Why/Why not?

 


Related Discussions:- Mathematical theory in otc

Regression, Read the article “Apple turns over entire inventory every five ...

Read the article “Apple turns over entire inventory every five days.”1 It is not surprising that, the success of managing inventory can lead to the success of a firm’s operational

Royalty accounts, Ritu acquired a mine on lease from Richa for a period of ...

Ritu acquired a mine on lease from Richa for a period of 8 years at a royalty of ` 60 per tonne of coal produced subject to minimum rent of ` 1,00,000 for the first year, increasin

Employee portion of medicare tax, Employee portion of Medicare tax Medi...

Employee portion of Medicare tax Medical health insurance tax is also taken out from a worker's wage or income and is equaled by participation from the company. In other terms,

Calculate the unit of omputer peripheral device, Northern Hi-Tec Electronic...

Northern Hi-Tec Electronics Limited manufactures six computer peripheral devices: internal modems , external modems , circuit boards , CD drives , hard disk drives , and memo

Find the distribution function, The probability density function (pdf) of X...

The probability density function (pdf) of X is given by f(x) =   (1-x/2  if          0 ≤ x           (0                    otherwise a. Verify that that f(x) is a legitim

Applying missing data, For this assignment, you will have to review each co...

For this assignment, you will have to review each column and make a decision for how to adjust for the missing data. After you correct for missing data in each column, please des

Generally accepted accounting principles, Can the Depreciation on Assets be...

Can the Depreciation on Assets be recorded in Single Entry system? No, it cannot be possible. What do you mean by Computer Hardware? The computer is made with different co

Statistic, any of your writer able to use the database given to generate th...

any of your writer able to use the database given to generate the null, alternative..etc.. into a power point presentation

Calculate the investments through model, Anna is considering investing $150...

Anna is considering investing $150,000 by dividing it into three investments. But she is not sure how much to put in each one. The first investment is known to follow a uniform dis

Normal distribution, In a mathematics examination the average grade was 82 ...

In a mathematics examination the average grade was 82 and the standard deviation was 5. all students with grade from 88 to 94 received grade of B. if the grade are approximately no

Write Your Message!

Captcha
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