# Questions tagged [finance]

Questions having to do with financial mathematics. This is not a tag about financing, which is not within the scope of mathematics defined by the help center: http://math.stackexchange.com/help/on-topic Topics may include: option pricing, arbitrage theory, market completeness, and applications of stochastic analysis to finance. Please note that for questions in quantitative finance, quant.stackexchange.com is perhaps a better site.

2,436 questions
Filter by
Sorted by
Tagged with
8 views

### Estimating the price of a put using the probability of bankruptcy

If there is a threshold price called $K_1$ for which the only way the stock price could fall below $K_1$ is if the company goes bankrupt over the period. Assuming that were to happen, the stock price ...
27 views

26 views

### Why Mr.Brown Still get the interest?

here is the example in broverman's book A promissory note is a short-term contract (generally less than one year) which requires the issuer of the note (the borrower) to pay the holder of the note (...
15 views

### Derivative pricing and porftofolios

I am struggling a little in understanding a passage in "PDE representations of derivatives with bilateral counterparty risk and funding cost" by Burgard and Kjaer: "As in the usual ...
21 views

### How to calculate APY from APR?

I'm trying to figure out how some investments based on compounding interest with bi-weekly contributions compare. One lists the APY, and the other lists the APR. I'm writing a program for comparing ...
74 views

### Submartingale under equivalent change of probability measure

Setting We work on a filtered probability space with finite time horizon $T$ and let $Q$ be a probability measure equivalent to $P$. Let $\rho_t=E[dQ/dP |\mathcal{F}_t]$, then $\rho$ is a martingale. ... 54 views

### Is there a math formula to calculate the following math problem? (Days of spending based on income)

I would like to learn how to calculate the following in the most efficient way possible. I guess there is a math function existing that could do that. Right now i am using google sheet functions, but ...
80 views

### Modelling difference in stock prices after a Brownian motion

Question Stocks $A$ and $B$ open on trading day at the same price. Let $X(t)$ denote the dollar amount by which stock $A$'s price exceeds stock $B$'s price when $100t\%$ of the trading day has elapsed....
25 views

### How to compute interest paid during a specified period for an irregular cash flow

I want to know how to compute how much interest was paid during a specified period for an irregular cash flow which varies by amount, frequency, and transaction direction. Furthermore, the specified ...