Start learning →

Which pricing method computes the average of past payouts and is only a rough guide?

ABurn analysis
BIndex modelling
CBusiness pricing
DPhysical modelling
Answer & Solution
Correct answer: A. Burn analysis
Burn analysis is quick and simple but ignores the statistical and physical features of weather.
Practise this question with Quill — CA Final →

Keep practising Derivatives Analysis and Valuation

Browse all Derivatives Analysis and Valuation questions for CA Final, or explore more Strategicfinancialmanagement topics.

Start a Derivatives Analysis and Valuation lesson →
Related questions