- Custom Writing Service
- [email protected]

**I tip very well**

**There will be 5 Questions each worth 20 points.**

**$15 per question seems reasonable**

**2 hours is plenty time to complete these 5 questions.**

**This is a timed exam you will have 120 minutes (2hrs) to complete it.**

**I will upload the exam once I have a tutor that is able to do the following down below.**

**Once I select a tutor I will upload the exam and you will have 2 hrs to complete the exam.**

**I need someone that is good at math(statistics). You should also know to calculate puts, calls, options, Stocks volatility.**

**Know how to use a normal Distribution chart**

**Questions might include**

**weather on a delta hedge****implicit volatility****Probability****Finding interest rates****Probability or paying off an asset****etc**

**Know how to do statistics and use the following formulas.**

**Gamma=Γ=(1/2π)^0.5 exp(-d^2/2)/(Sσ(T-t)^0.5).**

**The quadratic formula is (–b ±(b^2-4ac)^0.5)/2a.**

**If a variable X is distributed normally with mean u and standard deviation σ, Z=(X-u)/σ is distributed normally with mean 0 and standard deviation 1. The price of a call option on Weather derivatives is derived as follows:**

**Let X=the number of standard deviations the strike price is away from the mean.Y=-0.03X^3+ 0.22X^2-0.50X+0.4, price= Y*σ.**

**The Black-Sholes option pricing formula is C(S, K,T,t)=SN(d)- Pt(T-t)KN(d-σ(T-t^)^0.5)**

**Where d=[(ln (S/Pt(T-t)K))/(σ(T-t)^0.5)]+0.5σ(T-t)^0.5.**

**The 1st estimate of implicit volatility according to the M-K method is σ1=((ABS(LN(S0/X)+rT))*(2/T))^0.5.**

**The second estimate is σ^2=σ1– [(C1-C*(“true”)) * (2π)^0.5exp(d^2/2)/[S0(T)^0.5]].**

**(Both X and K above refer to strike prices.)**

**Know how to use a normal Distribution chart**

The post EBF473 PSUPSMC Financial Risk Management in The Energy Industry Answers appeared first on Brainy Term Papers.

EBF473 PSUPSMC Financial Risk Management in The Energy Industry Answers was first posted on February 24, 2021 at 12:42 am.

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