Question: Implement a user defined function (UDF) for Equation (3.1). The UDF is to be called calculate_btc_prices(btc_vol, btc_initial_price, datelist, rand_num) where btc_vol and btc_initial_price are the

Implement a user defined function (UDF) for Equation (3.1). The UDF is to be called calculate_btc_prices(btc_vol, btc_initial_price, datelist, rand_num) where btc_vol and btc_initial_price are the volatility of BTC and BTC price on the start date of analysis. datelist is a np.array providing the list of trading dates. rand_num is a np.array providing many values of Z that is needed to generate many BTC prices. The UDF is to return a dataframe of simulated BTC prices, to be indexed by dates.

Equation 3.1: St = St-1 exp (-0.5*vol^2*1/365 + vol*sqrt(1/365*Z) St, St-1 is the BTC prices on day t and t-1 respectively. Z is a random number drawn from a standard normal distribution.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

In a new file called LabE1.py, implement a Python user defined function called ftsecTokhr that converts speed given in units of feet per second to speed in units of kilometers per hour. Complete the...

Write a Python expression to do the following: (4 marks] >>> grades = [100, 95, 65, 95, 65, 100, 45, 65) Problem: 1. Use dictionary as a container of counters and implement a user defined function to...

Lab 4 : Writing User Defined Functions Objective The objective of this lab is to write user defined functions to calculate the area of a circle and the volume of a sphere. Additionally, you will...

1.txt (sample file, a number of files is provided by the user input) 2. Roster.txt Question: Anna, Nguyen, Thomas, Yun, Prateek, Favian, Abhinav, Ameena, Ryan, Parker, Omar, Charlotte, Ronnie,...

Large Program 3 Hangman COP3223C Introduction to Programming with C Spring 2022 Dr. Andrew Steinberg Background Story of this Assignment You are about to implement your third large program in this...

C Programing Homework: to demonstrate using conditional statements and loops. Produce a program code for each task and screenshot outputs **don't produce one whole program combining all tasks**...

Linear systems of equations are something that those in all engineering majors will see in their sophomore level classes. Inherently linear algebra is all about solving systems of equations. Because...

Hi hi fellow experts, May I seek your guidance on the 2 questions (2nd & 3rd screenshots) posted with the 1st screenshot being the intro to the question and the last screenshot being an appendix to...

For this project you are tasked with creating a guessing game. The computer will generate a random number between 1 and 20 and the user will be given 5 guesses to guess the number that the computer...

This is for C code Description:For this project you are tasked with creating a guessing game. The computer will generate a random number between 1 and 20 and the user will be given 5 guesses to guess...

The 2007 income statement for Group Danone, a French-based food processor that publishes IFRS-based financial statements, is provided below (in million euros). 2007 Net sales ............... 12,776...

Indicate whether each of the following statements is true or false by writing T or F in the answer column. 1. Property refers to both personal and real property. 1. ___________ 2. Fixtures are...

Question Content Area If the employer is tardy in paying the state contributions, the credit against the federal tax is limited to what percent of the late payments that would have been allowed as a...

This is my code and my output . Can you please help me why my output didn't look like the last picture ? I just want my output show 7 lines . Can you please help me to solve this problem ? Thanks ....