MSF 503 Financial Modeling
MSF 503 Financial Modeling Fall, 2019 PROJECT 2 1.) Recall LAB 2.1 that we did in class. This time assume the average inter-trade time (or scale) is equal to (say) 5 seconds. Write a Python program that finds the probability that the next trade will occur between 2 and 3 seconds. Recall that the cumulative distribution function (cdf) is F( x ) = P( X < x ). So, you will need to Google “python exponential distribution cdf”. If you are unfamiliar with Python, use trial and error to get the right answer for LAB 2.1 first. 2.) Suppose that a trading firm believes that a particular strategy will