A financial institution owns a portfolio of options dependent on the US dollar–sterling exchange rate. The delta of the portfolio with respect to percentage changes in the exchange rate is 6.1. If the daily volatility of the exchange rate is 0.5% and a linear model is assumed.
The estimated 10-day 99% VaR is $ .
In: Finance
Current models of climate change and cost-benefit analysis can rely heavily on the inclusion of extremely low probability but very high cost (catastrophic and irrevocable ecosystem changes, for example) events. Do inclusion of these events increase the validity of the analysis or do they bias the results?
In: Economics
Explain what might happen to accident rates if compulsory auto liability insurance laws were repealed and tort liability were restricted without mandating the purchase of PIP coverage. How could the government promote greater driving safety if these changes were made?
In: Operations Management
In: Biology
Write the balanced equation for the reaction between MnO4^- and C2)4^2-. Identify the oxidizing reagent and the reducing reagent. Identify the elements that undergo oxidation and reaction including their oxidation number changes. 2MnO4^- + 5 C2O4^2- + 16H^+ --> 2Mn^2+ + 10CO2 + 8H20
In: Chemistry
In: Computer Science
1. Although three major types of epigenetic modifications have been identified, specific environmental or nongenetic factors can cause epigenetic modifications. Identical twins have essentially the same DNA sequences; however, aging and significant lifestyle differences cause changes in:
In: Nursing
How did the economic disaster of the Great Depression, preceded by the roaring 1920s, cause a renewal of xenophobia in the US? Why would these two spectral changes cause this type of reaction again in the US? Do we see anything happening like this currently in the United States?
In: Economics
Please give your own examples of solids, liquids, and gases: A Molecular Comparison. Below you will find key questions on this topic.
1. Define crystalline and
amorphous and recognize the difference in
solids.
2. Know that both temperature and pressure can affect phase
changes.
In: Chemistry
4.a. Suppose that the nominal interest rate is 6%. If the nominal rate is three times of the real interest rate. Find the inflation rate?
b.If both riskiness of bonds and government budget deficit increase, what would happen to bonds prices? Show these changes in a graph?
In: Economics