This paper determines the most appropriate ways to model diffusion and jump features of exchange
rates. Simulations show that intraday periodicity in volatility prevents conventional tests from accurately
identifying the frequency and location of jumps.
This paper provides a general framework for the quantitative analysis of
stochastic dynamic models. We review convergence properties of some
numerical algorithms and available methods to bound approximation errors.
The two channels of default on unsecured consumer debt are (i) bankruptcy, which
legally grants partial or complete removal of unsecured debt under certain circumstances,
and (ii) delinquency, which is informal default via nonpayment.