Focus on how the packages supported and simplified company specific processes, and how they met your exact business requirements. Display your knowledge of how the packages differ in areas such as price, complexity and functionality. ...... More »
A sample answer to accounting interview questions like this is: In response to the changing market accountancy professionals have to provide more management and consulting services, in addition to financial management. They have to assume a g...... More »
The differnce lies in the time dependency of the SABR model parameters. Suppose today is Nov 1,2008. You have 2 sets of options of different strikes expiring at maturity of Dec 1,2008 and Jan 1,2009....... More »
Implied volatility is a parameter used to back out option price by substitting the volatility parameter in the standard Black Scholes model. While local volatility actually governs the dynamics of how the stock price will evolve. Hence if an ex...... More »
Vasicek model is an equilibrium model , meaning that it produces an endogeneous term structure. Current term structure of interest rates is an output of this model. while Extended Vasicek or Hull white model is a no-arbitrage model, meaning th...... More »
This is a method of translating calendar time into years for the purpose of determining applicable cashflow using interest rate quoted on per annum basis. For example, what should be the cashflow between the dates Jan 20,2008 to Mar 20,2008 if ...... More »
In case of a difference stationary process, the no. of times the differencing operation is carried out to achieve stationarity is called the integration order of the process. It is also said that the process has d unit roots.
Recall that the asymptotic distribution of Dickey Fuller test were derived for the null hypothesis for an autoregressive process AR(1), i.e., xt=αxt-1+ut H0 : α=1 H1 : α...... More »
