I’m currently in Derivative 11th class i.e first class of “Basic of Derivatives Pricing & Valuation” & I’m getting confused by the term”Value”, as per what I know I’ll try to put my questions in the form of points & ...
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Q. Under put–call–forward parity, which of the following transactions is risk free? A.)Short call, long put, long forward contract, long risk-free bond B.)Long call, short put, long forward contract, short risk-free bond C.)Long call, long put, short forward contract, short risk-free bond
If the net cost of carry of an asset is positive, then the price of a forward contract on that asset is most likely: A.) lower than if the net cost of carry was zero. B.) the same as if the net cost ...
I Know if volatility of underlying goes down, the value of call option going down…but why value of Hedge portfolio does not decrease…option says (Remain same)
In arbitrage portion under derivatives when we calculate law of one price or risk free portfolio is it necessary to take a derivative along with the share price
As per notes, brownfield gives higher yield than Greenfield! Then accordingly , from brownfield will earn high expected return as compared to Greenfield then why ans C is not correct?
In case of forward commitment, it not rely on the outcome of the underlying assets? Rights Then why answer B is not correct. It is obligatory to perform, so there is not relevant to say dependence on any event!
Can anyone tell me which concept has applied their?
In Answer 43 Please explain the meaning with the help of example “Size of a down-move is the reciprocal of the size of an up-move”