# Tagged Questions

Questions having to do with financial mathematics. Please note that for questions in quantitative finance, quant.stackexchange.com is perhaps a better site.

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### Maximum value for a dependent variable in a marginal effect model

I am unsure as to whether my calculations are correct. Currently, the model given is: The first question was to derive an equation for the marginal effects of EDU on In(Wage). I obtained the ...
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### Ratio vs Difference in terms of growth

Suppose we have the following data: start date end date quantity 01/05/2014 07/05/2015 5 07/06/2015 02/06/2016 8 What ...
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### No arbitrage iff there EMM $P^*$ theorem [closed]

The definition of an arbitrage I was given: "An arbitrage strategy is an admissible strategy with zero initial value and positive probability of a positive final value." I think that an initial ...
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### Common term for “present value” and “future value”

In the past, I have always used the term "present value" for the value of a payment made at some point in time $t$ from the perspective of some other valuation point in time $T$. I did not distinguish ...
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### Martingale Properties

Here is a proof of a property of a martingale $X$ relative to the filtration $(F_{n})$: $n\gt m,\\$ $\\ \\ E[X_n|F_m]=E[E[X_n|F_{n-1}]|F_m]=E[X_{n-1}|F_m]=...=E[X_m|F_m]=X_m$ In the definition of a ...
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### Redington vs full immunization?

I understand that the present values and duration of liabilities and assets are required to be equal to each other under both cases, and furthermore for Redington immunization the convexity must also ...
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### Factorals with exponents. Is their a way?

I know of multiplication factorials with the 4! = 4*3*2*1 and I know of the addition with the nth triangle. I am busy deriving my own equation for something, and i am getting stuck on how to furthur ...
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### Market Making Card Bet Game

In an interview I received the follow question: We have 3 cards face down, and we give each card in a deck of 52 a numeric score ( A = 1, 2=2, .... , J=11, Q=12, K = 13). The interviewer asked me to ...
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### Rule of 72 doubling time

I need some help understanding this. So as far as I can tell. The rule of 72 is used to determine when prices will double in years. This is done by 72 divided by the rate, or interest. So it would ...
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### Estimating the value of a stock

I need a way to know the value of my stock. Let $(x_1, \dots, x_n)$ be the quantity of the products $1$ to $n$ I have in stock, such that, for example, if I have $8$ units of the product $2$, $x_2 = 8$...
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### Negative option value

I have an exercise where I need to replicate the following graph: with my own parameters. To do this I use: \begin{align*} \text{Call option value} =SN(d_1)-Ee^{-r(T-t)}N(d_2) \end{align*} ...
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### Weighted Std Deviation of Securities

Corporate Finance problem - can't figure out if I'm right or not but here goes: Probability 15% 35% 20% 30% Security A 8% 5% -4% -6% I need to find mean and std deviation for security A. I got: ...