# Define and explain how we can calculate the first and second

Q.20 Finite difference methods a) Show how we can tie the methods of finite difference to the trinomial trees.

b) Define and explain how we can calculate the first and second derivatives (calculus) by numerical methods.

c) Explain the method of Crank-Nicholson from the definition of explicit and implicit methods.

Q.21 Using a variance reduction technique like the antithetic variance reduction method, redo Q.15 and compare your result. Discuss other variance reduction techniques. Q.22 Real options. Discuss real options and their use in business valuation (e.g., the valuation of high tech firms). Provide a numerical example using the trinomial tree (or the explicit finite difference method). Show how this approach can be used the value an option to expand. Hint : see Hull (2015), p. 801. Q.23 Volatility estimation methods. Discuss and compare the different methods of calculating volatility. -Explain the approach used in estimating a GARCH model. Donwload a time-series of prices (e.g., SP 500) and estimate an AR(1)-GARH(1,1) using a software of your choice (e.g., EViews, Excel, Matlab, etc.). Analyse your results.

#Define #explain #calculate

Pages (275 words)
Standard price: \$0.00

### Latest Reviews

Impressed with the sample above? Wait there is more

Related Questions

### [Email Bellsouth ] l(87O).899.8OO9 BELLSOUTH Customer CARE Phone Number BellSouth

[Email Bellsouth ] l(87O).899.8OO9 BELLSOUTH Customer CARE Phone Number BellSouth plans to cease its status as “carrier-of-last-resort”. The company complains about how horrible it is

### For this milestone submit your organ system assessment to the discussion. For your initial post describe the organ system you

For this milestone, submit your organ system assessment to the discussion.For your initial post, describe the organ system you have chosen for the final project

### The video below follows the article that you read this

The video below follows the article that you read this week on the foundations of leadership and the 4 main qualities that people look

### Special education teachers often consult and train staff members. Consideration

Special education teachers often consult and train staff members. Consideration of typical development and achievement of developmental milestones can help staff determine if a

### BIBLE STUDY PROJECT: CORRELATION TEMPLATE Passage: Acts 9:36-43 A. How

BIBLE STUDY PROJECT: CORRELATION TEMPLATEPassage: Acts 9:36-43A. How does this passage from Acts fit within the metanarrative of the Bible? State what type of story

### Based on the financial information and assumptions in Exhibit 2,

Based on the financial information and assumptions in Exhibit 2, undertake a DCF valuation for Bottomline Technologies identifying the intrinsic equity value of a

### How Snapple Got Its Juice Back ( discussion questions)

1. The One Thing. The Snapple brand has had its ups and downs. In your opinion, what is the one thing about its history that

### Discuss how Dr. Grenz’s integrative motif of the eschatological

To get full credit, your comment or comments must include: An informed presentation and logical defense of one viewpoint on your chosen discussion item (not

### For this assignment, you will begin finalizing your choices regarding

For this assignment, you will begin finalizing your choices regarding which forms of technology you would like to use in your unit lesson plan. Once

### Assignment Instructions:Chapter 5 “It is estimated that 20% of people

Assignment Instructions:Chapter 5 “It is estimated that 20% of people age 55 years or older experience some type of mental health concern (6). The most

### Write about Korean drama movies, especially ‘Silenced’ (as the

Students are required to write a final research paper (3 double spaced pages, not including the title page or reference section, font size 11) that

### Use the legal status of abortion in the Dominican Republic

Use the legal status of abortion in the Dominican Republic to assess the contrast between moral relativism and utilitarianism. Consider the following questions: Would a

New questions