(This equation can be interpreted as the producer surplus formula for the firm whose production technology for converting numeraire z into probability y of winning the object is defined by the auction and which resells the object at a fixed price t ).
12.
As a simple example to demonstrate the non-coherence of value-at-risk consider looking at the VaR of a portfolio at 95 % confidence over the next year of two default-able zero coupon bonds that mature in 1 years time denominated in our numeraire currency.
13.
By selecting as numeraire the time-" S " bond ( which corresponds to switching to the S-forward measure ), we have from the fundamental theorem of arbitrage-free pricing, the value at time 0 of a derivative which has payoff at time " S ".
14.
A direct extension, then, is the concept of a state price security ( also called an Arrow-Debreu security ), a contract that agrees to pay one unit of a numeraire ( a currency or a commodity ) if a particular state occurs ( " up " and " down " in the simplified example above ) at a particular time in the future and pays zero numeraire in all the other states.
15.
A direct extension, then, is the concept of a state price security ( also called an Arrow-Debreu security ), a contract that agrees to pay one unit of a numeraire ( a currency or a commodity ) if a particular state occurs ( " up " and " down " in the simplified example above ) at a particular time in the future and pays zero numeraire in all the other states.
How to say numeraire in Hindi and what is the meaning of numeraire in Hindi? numeraire Hindi meaning, translation, pronunciation, synonyms and example sentences are provided by Hindlish.com.
