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Data Structures and Other Objects Using C++
Data Structures and Other Objects Using C++

...  Each node may have a left child and a right child.  If you start from any node and move upward, you will eventually reach the root.  Every node except the root has one parent. The root has no parent.  Complete binary trees require the nodes to fill in each level from left-to-right before starti ...
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... of all the stock prices as well as any information that has been revealed about the terminal period endowment; the stock price must be adjusted to induce her to continue to hold the same amount of the stock. Thus, stocks cannot be priced in isolation from other assets (such as housing) held by agent ...
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pptx - Electrical and Computer Engineering

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... The forecasting error will be used to judge the quality of the forecasts. A typical metric used for this purpose is the Mean Square Error or MSE. The MSE is defined as: MSE = [(t+1)2 + (t+2)2 + (t+3)2 + ... + (t+Q)2]/Q, where Q is the number of forecasts. We will say that the higher the MSE, the ...
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... Once cost of debt and cost of equity have been determined, their blend, the weighted-average cost of capital (WACC), can be calculated. This WACC can then be used as a Annual effective discount rate|discount rate for a project's projected cash flows. ...
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... rate is higher than the 2- year SGD Interest Rate Swap rate by the barrier spread on that d ate. Interest Rate for the first year is 3.20% p.a. with no barrier spread. For the second year to the fifth year, the effective interest rate will range from a minimum of 0% p.a. to a maximum of 3.20% p.a. d ...
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... Optimal node splitting algorithm In this algorithm they gave two node splitting algorithms. The first one is a basic node splitting algorithm which partitions a full node into two making a metric the best. The second algorithm is an improvement of the basic one, called SHIFT method, to gain a high o ...
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... business activity (risk) of the firm. The idea behind the calculation shows that the project should create a profit at least which covers above the interest on debt the required return of equity. If the corporate income tax is considered as well then the above expression is modified to E* D ralt *  ...
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... operations The two operations describe above apply only to an auxiliary tree and do not cross into other auxiliary trees. We use the isRoot information for each node to avoid wandering in other trees. To perform tango-cut on auxiliary tree A at depth d, we can cut the nodes whose Depth > d in a Red- ...
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Home Country Macroeconomic Influences on Outward Cross

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< 1 ... 84 85 86 87 88 89 90 91 92 ... 166 >

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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