What else data is required to calculate historical based var

Assignment Help Other Subject
Reference no: EM132668679

Question: Financial engineering problem...

Not a big fun of option though I do love Monte Carlo method. A bank has written a call option on one stock and a put option on another stock. For the first option the stock price is 50, the strike price is 51, the volatility is 28% per annum, and the time to maturity is 9 months. For the second option the stock price is 20, the strike price is 19, and the volatility is 25% per annum, and the time to maturity is 1 year. Neither stock pays a dividend. The risk-free rate is 6% per annum, and the correlation between stock price returns is 0.4.

1. Using C/C++ or Java or Matlab to calculate the 10-day 99% Monte Carlo Simulation based VaR for the portfolio. Set the number of simulation to 5000.

2. What else data is required to calculate the 10-day 99% Historical based VaR for the portfolio?

Reference no: EM132668679

Questions Cloud

The fascinating field of marketing : The topic for this week is the fascinating field of marketing, which consists of the famous four P's: product, price, place, and promotion.
Prepare the missing adjusting entry : The total rental price for the 2 years is $96,000. Joto Inc. paid the total price $96,000 on 1 Jan. 2018. You are to prepare the missing adjusting entry.
How does fintech compare to regular banking : How does Fintech compare to regular banking? What are some of the applications of cords and strategies of growing and expanding?
What is the total amount would have to spend : What is the total amount you would have to spend (assuming no scholarships or grants) to pay for the entire 4-year education?
What else data is required to calculate historical based var : Not a big fun of option though I do love Monte Carlo method. A bank has written a call option on one stock and a put option on another stock. For the first opti
Leaders use communication to guide their organizations : You will research the different ways that managers and leaders use communication to guide their organizations.
Provide schedule of lease payments for mars ltd : Prepare journal entries to record the lease transactions for the year ended 30 June 2011 in the record of both companies. Provide schedule of lease payments.
Design the main dimensions - stator and rotor : Design the main dimensions, stator and rotor of a 75 kW,3000V,3 phase,8 pole,50 Hz, star connected slip ring induction motor. Assume an efficiency of 85
Prepare a single-step income statement for the year ended : Prepare a single-step income statement for the year ended December 31, 2020, including calculation of EPS. Expenses should be shown by function

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd