Harry Gayle is afixedinvestment analyst at one of the biggest investment banks in Boston. He is analyzing forward contracts on the bond of Cube Corp. The current price of Cube Corp is $950, and the bondpays a semiannual coupon of ...
SSEI QForum Latest Questions
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Given that Sample mean is 1.5 and Sample std deviation is 12. It is required to check with 95% confidence interval if population mean is positive. My doubt is that why this test is right tailed? I know the general answer ...
We discussed about linearity wrt parameters in Linear regression. But in order to do Linear regression, we also need linearity wrt variables. For example, we cannot do Linear regression in y=x⁴. We have not discussed this point anywhere. Isnt the condition ...
Variance of β1 is given by S²r÷(σ²x×n), where S²r is given by Σé²÷(n-k-1). Now, please see the attached photo from the class notes. The photo has the corrected value of S²r denoted by S*²r. It is nothing but weighted ...
Please explain this. FRM Quants class 1.4.2
Q. Claim in an insurance company occurs at the rate of 1 per year. Find the probability that a claim will occur in the next one year. Ans. 1-e –¹×¹ = 0.6321 or 63.21% Isn’t it counter intuitive that probability of next ...
PCR = Total Put OI÷ Total Call OI Why do we say that PCR pertains to call ‘shorts’ and put ‘shorts’. Why not long?
In case Future buyer upon contract maturity is in a comfortable situation and chooses to exercise it. Will he obtain the underlying asset from the seller or will he only receive the profit? Also, does this mean that Future seller must definitely ...
Why do we see only OTM area in Option Chain Analysis.