Statistics

A client has a of common and fixed-income instruments with a current value of £1,350,000. She intends to liquidate £50,000 […]

The basic calculation for volatility (denoted σ) as used in option pricing is the annualized standard deviation of continuously compounded

You are comparing two companies, BestRest and Relaxin, Inc. The exports of both companies stand to benefit substantially from the

A European put option on stock conveys the right to sell the stock at a pre-specified price, called the exercise

In futures markets, profits or losses on contracts are settled at the end of each trading day. This procedure is

A report from Fitch data service states the following two facts:1 • In 2002, the volume of defaulted US high-yield

You have developed a set of criteria for evaluating distressed credits. Companies that do not receive a passing score are

As in Example 11, you are reviewing the pricing of a speculative-grade, one-year-maturity, zero-coupon bond. Your goal is to estimate

Suppose the prospects for recovering principal for a defaulted bond issue depend on which of two economic scenarios prevails. Scenario

An analyst gathered the following information about the return distributions for two portfolios during the same time period: The analyst