Fama and French (1988) explained that time-varying discount rates are consistent with investors’ preference for current against future consumption and the stochastic evolution of their investment opportunities. There is evidence to support the notion that a changing discount rate predicts the market ...
What are the advantages and disadvantages of fixed exchange rates? Which would you prefer for the USD and why? Explain the no-arbitrage and risk-neutral valuation approaches to valuing a European option using a one-step binomial tree.
they’re more fun; but also:Interest rates are lowerthan in the past, which can impede investors hoping for strong returns on bonds, money market funds or CDs.