Search results

Thanks for your comprehensive reply David, very clear. To be sure though; I think the option value should not be able to go below zero, should it? Whereas a 50m long equity position funded by 50m common debt could, correct? Thanks again!

Hi @David Harper CFA FRM , I do get the idea of the economic exposure not being equal to the accounting book value exposure. But I think I am joining the initial question in the thread of how we go from the mentioned call option on 100m S&P, to a broker loan of 50m as a liability (what is a...

Hi there, I am puzzled with the graph below; isn't the independent amount posted as collateral, either way, whatever happens? Does the margin period of risk then still have an impact?

Hi @Nicole Seaman I'd like to choose to let it accrue for now :) Many thanks for this, and BT's good support throughout my studies!