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Overview and History
Overview and History

... HYPOTHESIS: assume a tree with height H-1 can store up to 2H-1 -1 nodes INDUCTIVE STEP: a tree with height H has a root and subtrees with height up to H-1 ...
HW#22 Explain Factoring
HW#22 Explain Factoring

... Step 2: Decide if the three terms have anything in common, called the greatest common factor or GCF. If so, factor out the GCF. Do not forget to include the GCF as part of your final answer. In this case, the three terms only have a 1 in common which is of no help. ...
Factoring using GCF
Factoring using GCF

y - Suyash Bhardwaj
y - Suyash Bhardwaj

In thIs Issue... The same policies that got the world economy into
In thIs Issue... The same policies that got the world economy into

... The US may not have been here before but Japan certainly has. After the bursting of its property boom, the government reduced interest rates to near-zero and indulged in massive pump priming. The systemic bad debt was covered up, never expunged from the system. The result has been a 20-year recessio ...
PPT - WSU EECS - Washington State University
PPT - WSU EECS - Washington State University

The Difficulty of Pricing “New Economy” Stocks
The Difficulty of Pricing “New Economy” Stocks

... The findings of macroeconomic and historical valuations of “new economy” stocks give rise to divergent interpretations. As a matter of fact, the discussion on stock valuations has centred on the discrepancy between the long-run returns on risky financial assets as valued according to historical seri ...
Binomial, Fibonacci, and Pairing Heaps
Binomial, Fibonacci, and Pairing Heaps

... recurrence, it is readily shown that Fk is given by the (k + 2)th Fibonacci number (from whence the name “Fibonacci heap” was inspired). Moreover, since the Fibonacci numbers grow exponentially fast, we conclude that the rank of a node is indeed bounded by the logarithm of the size of the subtree ro ...
Chapter 9
Chapter 9

... • But if current interest rates are 6%, you would pay only $990.57 because at 6% a smaller amount is needed to grow to $990.57(1.06) = $1050 • And if current interest rates are 4%, you would pay more – $1009.62 – because at 4% this higher amount would be needed to grow to ...
Notes (part 1)
Notes (part 1)

... The Steps for the network simplex 1. Select the entering arc. Key data structure: maintain the simplex multipliers O(1) step to determine if (i,j) is violating. 2. Determine the basic cycle C. Determine the flow around the basic cycle. Send the flow. 3. Determine the subtree T2 obtained upon deleti ...
Current Topics in Risk Management
Current Topics in Risk Management

... Options • Buyer of a default put (credit default swap) pays a premium (either up front, or amortized into a stream of payments). If there is a “credit event”, the seller pays the buyer a default payment. ...
Planar Point Location Using Persistent Search Trees
Planar Point Location Using Persistent Search Trees

... The line segments of the subdivision intersecting a slab are totally ordered, from the bottom to the top of the slab. Associate with each line segment the polygon just above it. Now it is possible to locate a query point with two binary searches: the first, on the x-coordinate, locates the slab cont ...
Dot Notation in Scheme
Dot Notation in Scheme

Chapter 2: Using Objects
Chapter 2: Using Objects

... As for binary tree, start by searching for the item If you don’t find it, and you stop at a 2-node, upgrade the 2-node to a 3-node. If you don’t find it, and you stop at a 3-node, you can’t just add another value. So, replace the 3-node by 2 2-nodes and push the middle value up to the parent node Re ...
Listas enlazadas
Listas enlazadas

... Advantages of Linked Lists • Inserting and extracting nodes have a cost that do not depend on the size of the list • Concatenation and partition of lists have a cost that do not depend on the size of the list • There is no need for contiguous memory • Memory actually in use at a given instant depen ...
1 Comparing the performance of market
1 Comparing the performance of market

... market variables are unlikely to be influenced by firm accounting policies, (iv) market prices reflect future expected cashflows, and hence should be more appropriate for prediction purposes, and (v) the output of such models is not time or sample dependent. However, the Merton model is a structural ...
lecture6
lecture6

Model Risk Management
Model Risk Management

Long-duration Bonds and Sovereign Defaults
Long-duration Bonds and Sovereign Defaults

- Saraswathi Velu College of Engineering
- Saraswathi Velu College of Engineering

... AVL tree –Adelson – Velskii and Landis Tree is a binary search tree with a balancing conditions. The condition is Right and Left trees have the same height. 2. What is hashing? The implementation of Hash Tables is called as Hashing. It is a technique used for performing insertions,deletions,and find ...
First and Second Order Approximations
First and Second Order Approximations

ADS@Unit-2[Balanced Trees] Unit II : Balanced Trees : AVL Trees
ADS@Unit-2[Balanced Trees] Unit II : Balanced Trees : AVL Trees

...  A tree can be empty with no nodes called the null or empty tree.  A tree is a structure consisting of one node call the root and one or more subtrees.  Descendant:- A node reachable by repeated proceeding form parent to child.  Ancestor:- a node reachable by repeated proceeding from child to pa ...
Parallelization of Bulk Operations for STL Dictionaries
Parallelization of Bulk Operations for STL Dictionaries

The volatility of the market price of commodities
The volatility of the market price of commodities

... d t off consistent i t t quality for longer period of time. Market risk: Mainly refers to fluctuations of the feedstock and biofuel prices and the correlation between the two or lack of it. Regulatory risk: As most biofuel production still requires policy support it is important whether investors an ...
Lecture No 13 - Taleem-E
Lecture No 13 - Taleem-E

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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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