In BSM we assume stock price follows lognormal distribution and returns are normally distributed but here it is written they follow lognormal distribution. Can someone explain
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Messer concludes, “We also use the BSM model to calculate the implied volatility. The implied volatilities of the index options expiring in one year are shown in Exhibit 2.” Exhibit 2 Implied Volatility Curve Strike Price Implied Volatility 700 18.71 710 17.98 720 17.38 730 16.69 740 15.83 750 15.40 760 14.50 770 14.03 780 13.21 790 12.11 800 11.09 Question Which of the ...
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Finally, Gabor wishes to test the hypothesis that whether or not a stock in the fund is listed on a US (as well as European) exchange is determined by the same independent variables as above (including the governance factors). She employs a logistic regression ...
How fall in percentage of population under the age of 16 would cause slower growth of labor force and hence slower growth of potential GDP ?
Under the Mudell-Fleming model, if the government reduces the budget deficit. What is the impact of currency in the short run? Sol: Interest rate decreases –> currency depreciates GDP decreases –> currency appreciates How do we choose the answer, which impact to consider Interest ...
Hi, Do standards 3 (duty towards clients) and 4 (duty towards employer) are applicable for part-time or contract workers ? Is there any exception for them ? Please let me know
Correct Answer is A Shouldn’t it be cross sectional regression?
What are the key major differences among… Classical growth theory Neo classical growth theory and Endogenous growth theory…?? Its very confusing
Can someone please explain the steps for the LBO model calculation here? (Given answer is B)