Shared Flashcard Set

Details

Title

Hull 4

Description

Hull 4

Total Cards

Subject

Finance

Level

Professional

Created

01/10/2012

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Additional Finance Flashcards

Term

Forward Rates Continous

Definition

R_f = [R₂(t₂) - R₁(t₁)] / (T₂-T₁)

Term

Better Approximation for yield changes

Definition

-Dφy +.5C(φy)^2

Term

Continous Convexity

Definition

=[Σt_i^2*c_i*e^(-y*t_i)]/P

Term

3 Theories of the Term Structure

Definition

1) Expectations Hypothesis 2) Liquidity Preference Theory 3) Market Segmentation Theory