Mathematical theory in otc, Basic Statistics

Assignment Help:

All parts should be answered as briefly as possible (quality not quantity!). A few sentences will suffice. Just get your opinions across succinctly. Unnecessarily long answers will be penalised.

a) Why do companies buy Over The Counter derivatives (OTC)?

b) In your opinion, what should the bank's objective be when coming up with a price for the OTC derivatives?

c) In your opinion, how should banks come up with an OTC derivative price which meets this objective?

d) In your opinion, does the mathematical theory help achieve this? Why/Why not?

 


Related Discussions:- Mathematical theory in otc

Replacement theory, who is the mathematician who invented replacement theor...

who is the mathematician who invented replacement theory of operation research

Demonstrate the potential risk from financing in eurodollars, You have the ...

You have the following information about rates in London for Eurocurrency loans of one-year duration, the exchange rate between the USD and euros, the currency in which you want fi

Normal distribution, Lifts usually have signs indicating their maximum capa...

Lifts usually have signs indicating their maximum capacity. Consider a sign in a lift that reads “maximum capacity 1400kg or 20 persons”. Suppose that the weights of lift-users are

12 questions, normal distribution and the sampling distributions of sample ...

normal distribution and the sampling distributions of sample proportions and sample means, but without confidence interval

Define right selling and buying strategy, Mr. Palsson plans to buy a MacBoo...

Mr. Palsson plans to buy a MacBook Pro which can hold the 6GB of RAM (he has a 4GB chip laying around, so he doesn't care what RAM is actually in the computer, as long as the compu

State income tax, State income tax In most declares paycheck accounting...

State income tax In most declares paycheck accounting will involve a condition earnings tax. In those declares a company is necessary to hold the condition earnings tax that an

Short-term credit decision, Short-Term Credit Decision In no more than...

Short-Term Credit Decision In no more than one typed page, provide a statement of your decision to lend or not lend to this company based on your interpretation of the company

Cat, charlie removes the 12 face cards from a standard deck of cards then s...

charlie removes the 12 face cards from a standard deck of cards then shuffles the face cards together on their own. He selects 2 cards from the pile. The probability that the first

Write Your Message!

Captcha
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