Options and Derivatives 1. What is an exchange? An exchange, refers to a marketplace or platform where various financial instruments, such as stocks, bonds, commodities, derivatives, and currencies, are traded. It provides a centralized venue where buyers and sellers can come together to execute transactions. Exchanges play a vital role in facilitating the smooth functioning of …
Linear Regression Interview Q&A Q1) What is Linear regression? Explain its types? Linear regression is a statistical method used to analyze the relationship between a dependent variable and one or more independent variables. In other words, it is used to predict the value of a dependent variable based on the values of one or more independent …
1. What is Geometric Brownian Motion (GBM)? Geometric Brownian Motion (GBM) is a mathematical model commonly used to describe the stochastic (random) behavior of certain continuous-time processes, particularly in the field of finance. It’s an essential concept in option pricing, risk management, and other areas ofquantitative finance. GBM is widely used to model the price movement of assets, such …
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