Financial Modeling With Jump Processes
What is Financial Modeling Using Jump Processes?
Financial modeling using jump processes is incorporating the use of stochastic models to explain price movements for financial securities (i.e., the Black and Scholes option pricing model). The “jump” process refers to random price jumps, rather than continuous movements. This type of modeling involves heavy quantitative finance, which differs from the traditional type of cash flow modeling performed in corporate finance.
Additional Questions and Answers
CFI is the official global provider of financial modeling and valuation analyst FMVA Designation. CFI’s mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way.
In order to become a great financial analyst, below are some additional questions and answers for you to explore further:
Example Excel Model
CFI is the official global provider of financial modeling and valuation analyst FMVA Designation. CFI’s mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way.
In order to become a great financial analyst, below are some additional questions and answers for you to explore further:
- What are the types of financial models?
- What is sensitivity analysis?
- What is bookkeeping?
- What are the most common valuation methods?
Below is a screenshot from one of CFI’s online analyst training and certification courses, offered 100% online.
To learn How to Build an Excel Model step-by-step, click on the image below.
Analyst Certification Program
CFI is the official global provider of financial modeling and valuation analyst FMVA Designation. CFI’s mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way.
In order to become a great financial analyst, below are some additional questions and answers for you to explore further:
- What are the types of financial models?
- What is sensitivity analysis?
- What is bookkeeping?
- What are the most common valuation methods?
