Hello David - On question 67.3 and 67.4, May I kindly request to provide the effect of gamma and theta. Also may I kindly request to provide the formulas for calculating Gamma, Vega and Theta.
Hello - I am trying to calculate Risk neutral probability of three step process
P2.T5. Market Risk Measurement & Management
In page 27 study download, three step binomial tree
I do noticed risk neutral probablities
May I kindly request to paste the step by step calculation?
15.21. A bank has the following transaction with a AA-rated corporation a) A two-year interest rate swap with a principal of $100 million that is worth $3 million b) A nine-month foreign exchange forward contract with a principal of $150...
Can you please explain the math portion on this question
A five-year bond provides a coupon of 5% per annum payable semiannually. Its price is 104.
What is the bond's yield? You may find Excel's Solver useful.
The answer (with continuous compounding) is 4.07%