It's drived from Covered and uncovered IRP. It's assume that forward exchange rate is unbiased forcast of future spot exchange if both covered and uncovered int. Rate parity hold.
It’s drived from Covered and uncovered IRP.
It’s assume that forward exchange rate is unbiased forcast of future spot exchange if both covered and uncovered int. Rate parity hold.
So we did 250 put short and 370 call long but how did we find it? Gama is .0037 and .0025 so if we do reverse ratio then it will come .0025*900= 2.25 Or we just randomly took as a ratio of .0025 : .0037 as 250 vs 370
So we did 250 put short and 370 call long but how did we find it? Gama is .0037 and .0025 so if we do reverse ratio then it will come .0025*900= 2.25
Or we just randomly took as a ratio of .0025 : .0037 as 250 vs 370
Am I right that we benefited in present if we buy future so we can save r on borrowings but now we take option on future and so future benefit laps and r laps. Since r is same in future n option so r-r. Pls correct me
Am I right that we benefited in present if we buy future so we can save r on borrowings but now we take option on future and so future benefit laps and r laps. Since r is same in future n option so
Sorry sir.... I get this ans.. Actually I was puzzled bcoz they did calculation in solution and I overstressed on this qus after that i realised I didn't have to think on this qus it's so simple. My qus wrong bcoz of I didn't notice that time on the word "one year" holding return. Thankyou sir . ButRead more
Sorry sir…. I get this ans.. Actually I was puzzled bcoz they did calculation in solution and I overstressed on this qus after that i realised I didn’t have to think on this qus it’s so simple.
My qus wrong bcoz of I didn’t notice that time on the word “one year” holding return.
Hedge fund strategies
Thankyou i got it..
Thankyou i got it..
See lessExample 7, comparison of fixed rate bond | An active manager observes a yield spread for an outstanding corporate bond that is above the G-Spread for that same bond.
Now, it's updated. Thankyou Sir
Now, it’s updated.
See lessThankyou Sir
Forward rate parity
It's drived from Covered and uncovered IRP. It's assume that forward exchange rate is unbiased forcast of future spot exchange if both covered and uncovered int. Rate parity hold.
It’s drived from Covered and uncovered IRP.
It’s assume that forward exchange rate is unbiased forcast of future spot exchange if both covered and uncovered int. Rate parity hold.
See lessDelta gama nutral portfolio
So we did 250 put short and 370 call long but how did we find it? Gama is .0037 and .0025 so if we do reverse ratio then it will come .0025*900= 2.25 Or we just randomly took as a ratio of .0025 : .0037 as 250 vs 370
So we did 250 put short and 370 call long but how did we find it? Gama is .0037 and .0025 so if we do reverse ratio then it will come .0025*900= 2.25
See lessOr we just randomly took as a ratio of .0025 : .0037 as 250 vs 370
Options on futures
Am I right that we benefited in present if we buy future so we can save r on borrowings but now we take option on future and so future benefit laps and r laps. Since r is same in future n option so r-r. Pls correct me
Am I right that we benefited in present if we buy future so we can save r on borrowings but now we take option on future and so future benefit laps and r laps. Since r is same in future n option so
r-r.
Pls correct me
See lessBinomial tree
Oh yes. . I was confused. U r right. Thanks
Oh yes. . I was confused. U r right.
Thanks
See lessHere why are they adding the probability of default for the 2 years and when interest rate is not given we take copoun as the expected exposure like in this sum it’s 50 , 50 , 1050
Pls provide the photo for qus to better understanding what they ask.
Pls provide the photo for qus to better understanding what they ask.
See lessOne holding period return
Sorry sir.... I get this ans.. Actually I was puzzled bcoz they did calculation in solution and I overstressed on this qus after that i realised I didn't have to think on this qus it's so simple. My qus wrong bcoz of I didn't notice that time on the word "one year" holding return. Thankyou sir . ButRead more
Sorry sir…. I get this ans.. Actually I was puzzled bcoz they did calculation in solution and I overstressed on this qus after that i realised I didn’t have to think on this qus it’s so simple.
My qus wrong bcoz of I didn’t notice that time on the word “one year” holding return.
Thankyou sir .
But ye qus delete ni ho pa ra ta
See lessRelated to KRD
Thanku so much
Thanku so much
See lessSpread calculation
If maturity has given 3 years for this qus., Then we calculate spread simply (1.05-.41)=.64 Am I right?
If maturity has given 3 years for this qus., Then we calculate spread simply (1.05-.41)=.64
See lessAm I right?