Recent content by jairamjana

The exact opposite of a straddle is a iron condor.. Because it is used when expectations of low volatility.. And it looks bit like box spread with 4 different positions but the difference is all your position should be OTM.. Thank you.. Shakti..

I would think $1 is the transaction costs such that it completely erodes any riskless profit that we try to make.. That's a great example you posted there.. Didn't understand why 48,52,52 and 48 were used for payoff formula . When it should be 45,55,55 and 45.. Why 3$ difference? But the payoff...

Straddle has high volatility .. Since you pay both call and put premium.. It's a costly one which depends on how significant the movement of stock price is.. So positive payoff is difficult.. Thank you for the summary @ShaktiRathore .. Just to add to it there is also box strategy which gives a...

I am not knowledgeable with Part II much but I think Jon Gregory's book on Counterparty Credit Risk and Credit Value Adjustment is mainly used so based on that guess.. I will just link you to a number of spreadsheets from that material...

So happens that bro bought a book Measures, integrals and martingale by Rene Schilling just yesterday .. Coincidence maybe.. Damn I haven't played an actual roulette game.. Saw the video and thought I understood..:(. I will learn and come back and maybe make my bro explain martingale in an easy...

I will direct to one of BT notes in investopedia.. The last para summarises it http://www.investopedia.com/articles/trading/11/understanding-liquidity-risk.asp Hope that's useful..:)

Before I explain, Just want to make it clear that I do not promote betting nor involve myself in it.. I see it as an exercise in understanding probability. And yes, this is not related to FRM.. But I found this of real interest. He explains a method where we can always profit from playing...

I know that 2nd line was referring to me..;) ShaktiRathore has explained really well. Nothing more to add...:)

For more about N(d2) and N(d1) https://forum.bionicturtle.com/threads/interpretation-of-n-d1-and-n-d2.610/ David sir tries to explain it as intuitive as possible.. :) You can also later check the book Options, future and other derivatives by John hull.. The industry standard and basic book on...

Hi, I can answer the 2nd Question now.. Use 9 decimal places for your calculator.. With 9 decimal places you can always find a round off for questions whose choice involves 2 , 3, 4 decimal places... And I doubt if answer choices will depend on your choice of decimal places to use.. 9 is...

I don't have the BT Notes but I will take a guess of how the strategy is likely presented.. Payoff for Bull Call and Bull Put spread are same.. Refer here (ie, http://www.theoptionsguide.com/images/bull-call-spread.gif) (ie, http://www.theoptionsguide.com/images/bull-call-spread.gif) As you...

Ok.. I won't get into Binomial models(risk neutral) or the black scholes.. But We could understand a simpler method for this which involves expiration date of the call/put option (T) , the Current stock price .. S(0) , the risk free rate/discount rate (r) and finally the strike price (K) .. Now...

Hi, I would like to ask if pursuing FRM after finishing professional accountants course like CA/CPA/ACCA give me a extension and a addition. I know both are different scope wise.. And MBAs normally do FRM. CAs are professionally trained in auditing, taxation, financial management and accounting...

Haha.:D. your question sounded general I thought you were meaning explain the whole equation... Very well at least if someone wants to understand the derivation that elaborate post will be useful...

Ok I understood your question ... This is not Variance to the power (-2) ... That minus like symbol is a dash actually.. That's how a mean of variable is symbolized.. This is the correct way as I explained in first post