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Hey guys, I'm trying to solve the below PDE using explicit finite difference method but it just never seems to converge. If i increase the timesteps and/or the spacesteps even by a little amount, the final value increases exponentially. I even tried solving it using separation of variables...

Hi All, I've been asked to value a CMO by this company as part of their interview process which i need to value using Monte Carlo simulation. Here are the terms of it: Mortgage Term : 360 months Monthly Payment: $2000 (P + I) Mortgage holder can prepay a portion of the principal at any time...

Hey guys, Having a bit of trouble with this question. Any help appreciated. Your favorite baseball team is playing against your uncle's favorite team in the World Series. At the beginning of each game, you and your uncle bet on the game's outcome. Your uncle, being wealthy and carefree...

Hi All, I'm left a bit baffled after i had a telephonic interview with a major IB in London. It was for a FO position as a quant developer in credit derivatives and i was expected to have knowledge of interest rate derivatives. So the interviewer asks me what an interest rate swap is which i...