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Trees
Trees

... • In a full tree, there is one more node on the bottom row than in the rest of the tree. This about half of all operations require finding a node on the lowest level. • In an unordered array or a linked list containing 1,000,000 items it would take on the average 500,000 comparisons to find the one ...
Can the Black-Scholes-Merton Model Survive Under Transaction
Can the Black-Scholes-Merton Model Survive Under Transaction

... complexity of the resulting expressions. Although the discrete time distribution of the underlying stock price was assumed to have independent and identically distributed (iid) returns, the stochastic process under which the bounds were evaluated as risk neutral expectations was Markovian but with s ...
Matching the risk profile of your funds with the risk characteristics of
Matching the risk profile of your funds with the risk characteristics of

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A fast algorithm for building lattices
A fast algorithm for building lattices

CIS 2520 Data Structures: Review Linked list: Ordered Linked List:
CIS 2520 Data Structures: Review Linked list: Ordered Linked List:

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Chapter 2
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Guess the Number, continued
Guess the Number, continued

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Building Trees

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Tree is a collection of nodes in which there is a root node and all
Tree is a collection of nodes in which there is a root node and all

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Discounting, Real/Nominal Values

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Lecture4 - UCSB Economics

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Factors affecting the price of catastrophe bonds

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Credit Derivative: Concept & Applications in the By

... equal to pretty much the value of the assets. For unfounded CDOs, there might be a reference pool of £1 billion of assets, but there’s only £100 million or so of cash in the deal that people have funded. Within funded CDOs, there are balance sheet CDOs and arbitrage CDOs. In arbitrage CDOs, there ar ...
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Chapter 6 --Alternate Measures of Capital  Investment Desirability
Chapter 6 --Alternate Measures of Capital Investment Desirability

Full text
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Binary Search Tree and Its Applications: A Survey

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Chapter Objectives - Jacksonville University
Chapter Objectives - Jacksonville University

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Lattice model (finance)



For other meanings, see lattice model (disambiguation)In finance, a lattice model [1] is a technique applied to the valuation of derivatives, where, because of path dependence in the payoff, 1) a discretized model is required and 2) Monte Carlo methods fail to account for optimal decisions to terminate the derivative by early exercise. For equity options, a typical example would be pricing an American option, where a decision as to option exercise is required at ""all"" times (any time) before and including maturity. A continuous model, on the other hand, such as Black Scholes, would only allow for the valuation of European options, where exercise is on the option's maturity date. For interest rate derivatives lattices are additionally useful in that they address many of the issues encountered with continuous models, such as pull to par.
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