Future & Forward and Options Market

Future & Forward and Options Market Paper details: (a) What is the importance of the topic in derivatives market and risk management? (b) What has been done on the topic by the researchers and scholars in the field? What is the current state of knowledge on the topic? (c) What are the unanswered questions on the topic? How are researchers and scholars addressing these questions? (d) What is your assessment of current and on-going research work on the topic moving forward? What are the future research agenda(s) on the topic? (e) An executive summary of the paper or concluding remark(s) covering the topic. For more details on the online submission procedures including SVN visit the home page of the school and look for SVN information under the For Students" tab. Your code will be compiled and run, testing its outputs for the two networks with two queries each that have been provided to you. None of the networks will contain more than 6 16 variables. Since the results are stochastic, the query answers will not be exact and will vary from run to run. The answers will therefore be tested against a tolerance of 0.01 (i.e. your answers must be within 1% of the true values), so you must ensure convergence to this level of precision. If it passes all tests you will get 15% of the overall course mark. Note undergrads need to do inference (15%), and postgrads need to to do both inference (10%) and learning (5%). The objective of the tests is to check for the correct operation of your implementation. Hence, the basis of the assessment is to compare your results against the expected results. You must also ensure that you have an ecient implementation. 5 Bonus points for Undergrads Undergrads can choose to do the learning task described in section 1.2 and 2.2 for bonus point of 3%. 6 Using other source code You may not use other source code for this assignment. You should personally and carefully implement to fully understand the concept(s). 7 Due date and late submission policy This assignment is due 11.59pm on Friday 12th June 2015. If your submission is late the maximum mark you can obtain will be reduced by 25% per day (or part thereof) past the due date or any extension you are granted. The End by Javen Shi, 7 May 2015