The confusion over here is that first step is we find no arbitrage rates at the initiation of contract(bada factor by chota factor) and you put bada factor in RCL 1 and chota factor in RCL 2 and find rate for the FRA. 2)Now in your example the 3 months have passed but ‘In example the 6m rate is alreRead more
The confusion over here is that first step is we find no arbitrage rates at the initiation of contract(bada factor by chota factor) and you put bada factor in RCL 1 and chota factor in RCL 2 and find rate for the FRA.
2)Now in your example the 3 months have passed but ‘In example the 6m rate is already given the new one’ so you don’t have to find the new rate if it was not given then you have to find the new one for example: If it was for 60*270 FRA and 20 days have passed since initiation so you to find new rate at today by doing 250 days ka factor STO1 and 40 days ka factor STO2 and new rates come as per term structure now you do the valuation of FRA. [old F- new F]/RCL1 this is pulling the ans where you standing. We don’t take old RCL1 which used to calculate the rate at initiation.
There are two types of stocks one is value and other is growth. Value are those stocks which are downtrodden but in future they are going to win i.e whose P/B ratio is low, and B/P is high and in fundamental weighting is generally have a ‘contrarian’ effect means jo stock increase hua hai usse weiRead more
There are two types of stocks one is value and other is growth. Value are those stocks which are downtrodden but in future they are going to win i.e whose P/B ratio is low, and B/P is high and in fundamental weighting is generally have a ‘contrarian’ effect means jo stock increase hua hai usse weight hatta kar loser ko weight jayada milega when there is rebalancing. (feeling lossers are going to be winners) value tilt. Weights are given to book value & etc.
Derivatives
The confusion over here is that first step is we find no arbitrage rates at the initiation of contract(bada factor by chota factor) and you put bada factor in RCL 1 and chota factor in RCL 2 and find rate for the FRA. 2)Now in your example the 3 months have passed but ‘In example the 6m rate is alreRead more
The confusion over here is that first step is we find no arbitrage rates at the initiation of contract(bada factor by chota factor) and you put bada factor in RCL 1 and chota factor in RCL 2 and find rate for the FRA.
See less2)Now in your example the 3 months have passed but ‘In example the 6m rate is already given the new one’ so you don’t have to find the new rate if it was not given then you have to find the new one for example: If it was for 60*270 FRA and 20 days have passed since initiation so you to find new rate at today by doing 250 days ka factor STO1 and 40 days ka factor STO2 and new rates come as per term structure now you do the valuation of FRA. [old F- new F]/RCL1 this is pulling the ans where you standing. We don’t take old RCL1 which used to calculate the rate at initiation.
equity
There are two types of stocks one is value and other is growth. Value are those stocks which are downtrodden but in future they are going to win i.e whose P/B ratio is low, and B/P is high and in fundamental weighting is generally have a ‘contrarian’ effect means jo stock increase hua hai usse weiRead more
There are two types of stocks one is value and other is growth. Value are those stocks which are downtrodden but in future they are going to win i.e whose P/B ratio is low, and B/P is high and in fundamental weighting is generally have a ‘contrarian’ effect means jo stock increase hua hai usse weight hatta kar loser ko weight jayada milega when there is rebalancing. (feeling lossers are going to be winners) value tilt. Weights are given to book value & etc.
See less