What is the recommended way of making volatility a function of time in a Cox, Ross, Rubinstein tree?
A. Make u a function of time
B. Make p a function of time
C. Make u and p a function of time
D. Make the lengths of the time steps unequal
D
To make volatility a function of time we make the lengths of time steps inversely proportional to variance.
Business
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A) Ranking B) Measurement C) Scaling D) Rating
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Which of the following makes common stocks more risky than corporate bonds when both are issued by the same company?
A) Claims on income B) Unlimited liability C) Claims on assets D) All of the above are correct. E) Only A and C are correct.
Business