Frequently Asked Questions In Quantitative Finance

342 Frequently Asked Questions In Quantitative Finance T he following are some of the most common search words or phrases onwilm ...

Chapter 9: Popular Search Words 343 Calibration Determining parameters (possibly state and time dependent) such that one’s theor ...

344 Frequently Asked Questions In Quantitative Finance underlying or parameters increases the derivative’s value, a negative con ...

Chapter 9: Popular Search Words 345 Exotic A contract that is made to measure, or bespoke, for a client and which does not exist ...

346 Frequently Asked Questions In Quantitative Finance have the same distribution. The normal distribution is a spe- cial case. ...

Chapter 9: Popular Search Words 347 Quantlib Definition taken fromwww.quantlib.org: ‘‘QuantLib is a free/open-source library for ...

348 Frequently Asked Questions In Quantitative Finance Stochastic Random. The branch of mathematics involving the random evoluti ...

Chapter 10 Brainteasers ...

350 Frequently Asked Questions In Quantitative Finance T he following Brainteasers have all been taken from wilmott.com. They ar ...

Chapter 10: Brainteasers 351 that you don’t know anyone else’s birthday, and that birthdays are uniformly distributed throughout ...

352 Frequently Asked Questions In Quantitative Finance Minimum and maximum correlation IfX,YandZare three random variables such ...

Chapter 10: Brainteasers 353 Annual returns Every day a trader either makes 50% with probability 0.6 or loses 50% with probabili ...

354 Frequently Asked Questions In Quantitative Finance Snowflake Start with an equilateral triangle. Now stick on to the middle ...

Chapter 10: Brainteasers 355 Bookworm There is a two-volume book set on a shelf, the volumes being side by side, first then seco ...

356 Frequently Asked Questions In Quantitative Finance The Norwegian lives in the first house. The man who smokes Blends lives ...

Chapter 10: Brainteasers 357 that if you multiply their ages, the result is 36. He says he needs more info so she tells him that ...

358 Frequently Asked Questions In Quantitative Finance Muddy faces A group of children are playing and some of them get mud on t ...

Chapter 10: Brainteasers 359 The Answers Russian roulette I have a revolver which holds up to six bullets. There are two bullets ...

360 Frequently Asked Questions In Quantitative Finance that ‘shot’ it becomes fifty-fifty and if you are successful four times i ...

Chapter 10: Brainteasers 361 Another one about birthdays At a cinema the manager announces that a free ticket will be given to t ...