1. S

    Financial Derivative Pricing

    Please could someone help me with this question, I’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
  2. F

    Hi and help! - Relative Pricing

    Hi there, 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 ...
  3. K

    Bond Pricing using Cox Ingersoll Ross

    Hello, I'm writing my bachelor thesis and need your help regarding bond pricing via CIR. I uploaded an excel spreadsheet here: http// I calculated the term structure and the discount rates. Now I have to price a coupon bond, traded...
  4. B

    Double Discounting Prices Formula

    Hello! I'm new to this forum, so I'm hoping some kind people can help me out here. Scenario:- 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...
  5. B

    Optimization problem. Asset pricing.

    Hi! Ive almost spent 10 hours trying to figure out this problem but I'm stuck. Anyone got any hints or tips? Task attached. Thanks in advance!
  6. W

    Asymptotic Retail Pricing Based on Cost

    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...
  7. C

    FRA & FX pricing and valuation

    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...
  8. F

    Binomial Option pricing

    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...