Please could someone help me with this question, Iâ€™d be very grateful :-
Suppose that f is a solution of the above Black-Scholes PDE and that f (s,t) = g(s), i.e., Suppose that f may be written as a function of S only. Deduce the general form of f
Got a question on price indexes.
My boss wants me to do a price survey of beer within my market. He wants prices of mainstream beer to expensive beer but I'm a little lost on the example he gave me....can someone explain?
Mainstream beer: 1.00
Heineken : 1.17
Craft Beer ...
I'm writing my bachelor thesis and need your help regarding bond pricing via CIR. I uploaded an excel spreadsheet here:
I calculated the term structure and the discount rates. Now I have to price a coupon bond, traded...
I'm new to this forum, so I'm hoping some kind people can help me out here.
I have a set of customers who are set up to have 20% discount on all products in our store.
As a special offer, we would like to offer these customers 25% discount within a date range.
I need to find a formula that will allow me to calculate the retail price of an item, based on its cost, with the % markup inversely proportional to the cost.
In the past we have used a straight-line method of calculation where we would add a fixed % of the cost to derive the retail price. So...
I have been trying to figure out this problem for the past 2 days but I am having trouble understanding which dates/rates to use and which formula to use for an foreign exchange FRA. as well as if and how you incorporate the fx rates in table one. I have seen FRA problems and currency forward...
Someone help please. New to option pricing, and stuck with the following question -
Consider a stock price that follows a binomial process. The current stock price is 100. It goes
up by 10% or down by 30% each month. The monthly interest rate is 5% for both months.
An American put option has...