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In probability theory and statistics, the moment-generating function of a real-valued random variable is an alternative specification of its probability distribution.Thus, it provides the basis of an alternative route to analytical results compared with working directly with probability density functions or cumulative distribution functions.
In mathematics, Molien's formula computes the generating function attached to a linear representation of a group G on a finite-dimensional vector space, that counts the homogeneous polynomials of a given total degree that are invariants for G.
In monetary economics, the demand for money is the desired holding of financial assets in the form of money: that is, cash or bank deposits rather than investments.It can refer to the demand for money narrowly defined as M1 (directly spendable holdings), or for money in the broader sense of M2 or M3.
The quadratic Hill yield criterion for thin rolled plates (plane stress conditions) can be expressed as + (+) (+) + = where the principal stresses , are assumed to be aligned with the axes of anisotropy with in the rolling direction and perpendicular to the rolling direction, =, is the R-value in the rolling direction, and is the R-value perpendicular to the rolling direction.
The model can be calibrated to market data by implying the form of from market prices, meaning that it can exactly return the price of bonds comprising the yield curve. This calibration, and subsequent valuation of bond options , swaptions and other interest rate derivatives , is typically performed via a binomial lattice based model .
A trajectory of the short rate and the corresponding yield curves at T=0 (purple) and two later points in time. In finance, the Vasicek model is a mathematical model describing the evolution of interest rates. It is a type of one-factor short-rate model as it describes interest rate movements as driven by only one source of market risk.
The Monod equation is a mathematical model for the growth of microorganisms. It is named for Jacques Monod (1910–1976, a French biochemist, Nobel Prize in Physiology or Medicine in 1965), who proposed using an equation of this form to relate microbial growth rates in an aqueous environment to the concentration of a limiting nutrient.
Once solved, retain these known short rates, and proceed to the next time-step (i.e. input spot-rate), "growing" the tree until it incorporates the full input yield-curve. In mathematical finance , the Black–Derman–Toy model ( BDT ) is a popular short-rate model used in the pricing of bond options , swaptions and other interest rate ...