Suppose that a financial institution uses an imprecise model

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Suppose that a financial institution uses an imprecise model

 

Suppose that a financial institution uses an imprecise model for pricing and hedging a particular type of structure product. Discuss how, if at all, it is likely to realize its mistakes.

 

 

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Suppose that a financial institution uses an imprecise model

Best Suppose that a financial institution uses an imprecise model

Suppose that a financial institution uses an imprecise model

 

 

 

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