Mathematical theory in otc, Basic Statistics

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?

 

Posted Date: 3/1/2013 6:58:59 AM | Location : United States







Related Discussions:- Mathematical theory in otc, Assignment Help, Ask Question on Mathematical theory in otc, Get Answer, Expert's Help, Mathematical theory in otc Discussions

Write discussion on Mathematical theory in otc
Your posts are moderated
Related Questions
Sales from a leading motor dealership were monitored over the past four years. The sales figures are presented in the accompanying table. Year Quarter 1 Quarter 2 Quarter 3 Quarter

what are the characteristics

You have collected data from the factory on a critical to quality attribute. The attached Excel spreadsheet lists the response, Y and four potential predictors. You would like to m

Given the following pairs of random variables and compute the following sums. (NB: show your working table). 3 -7 2 10 6 11 10 12 15 14 (b) (c) (d) ?¦?2y

Consider two firms producing an identical product in a market where the demand is described by p = 1; 200 - 2Y. The corresponding cost functions are c1 (y1) = y 2 1 and c2 (y2) =

A cognitive psychologists knows that concrete words, which easily evoke images (.e.g. "sunset", "truck") are easier to remember than abstract words, but she would like to know if t


What is probability 0.10 called?

Find Karl Pearson's correlation coefficient between the sales and expenses from the data given below:

Depreciation during the financial year  The Resources which are bought during the economical season and its determined that the Depreciation will be incurred on them @ 10% PA it