Search results

Here are some of the combinations and packages possible from the call and put options.X represents the exercise price. Thanks

Hi, Also see: https://forum.bionicturtle.com/threads/bid-ask-spread-reflecting-endogenous-liquidity-risks.5463/#post-15316 Thanks

Thanks again Nicole,please let it Accrue.

Hi, please see: https://forum.bionicturtle.com/threads/var-not-subadditive-coherent-risk-measure.7117/ thanks

Hi, Yes as jairam above pointed the the value of call is simply S(0)-K*e^(-r*T) can be written as S(0)-K+K-K*e^(-r*T)=( S(0)-K)+K(1-e^(-r*T))=Moneyness+K(1-e^(-r*T)) where Moneyness=( S(0)-K) the present Intrinsic value of the option.Thus we get the value of the option in terms of ( S(0)-K)...

Adding to above, regarding 1st question no The FRM exam is not structured like this totally.There might be some questions that could be structured like this but many are also isolated questions each checking a different concept as far as i know,may be a case with each question checking a...

Hi, An option free bond is a plain vanilla bond with no option embedded.With option embedded means that there is call feature that is the issuer can call back the bond later before maturity when callable bond price exceeds a predetermined price while in the put option bond the investor can sell...

Hi, please see: https://forum.bionicturtle.com/threads/risk-management-related-experience.8437/#post-39503 Yes your work should involve management of financial risk in any way.If your work on Operational Risk tool involved management of financial risk then definitely i think your work qualifies...

Hi I think i would go for these calculus books: 1.The Calculus Lifesaver: All the Tools You Need to Excel at Calculus (Princeton Lifesaver Study Guide) by Adrian Banner (Author) 2.Calculus Know-It-ALL: Beginner to Advanced, and Everything in Between by Stan Gibilisco (Author) 3. The Cartoon...

Hi Brian, Its the direction that matters in terms of determining whether the basis is Strengthening or Weakening,Not the magnitude or the sign as per the Hull. Strengthening of basis is an increase in basis from -ve to +ve direction that is basis moves towards positive direction while...

So lets settle for that Mu +0.5*Sigma^2 is the drift of lognormal random variable as discussed in the paper.And Mu-0.5*Sigma^2 is risk neutral drift that we often comes across in the Black scholes(BSM) derivation where we assume a risk free world. thanks

Hi, please visit: https://forum.bionicturtle.com/threads/pro-cyclical-effects-of-var-based-capital-measures.8205/#post-34050 thanks

Hi David is right when he talks about the drift of returns. The drift component should be Mu - 0.5*Sigma^2 for returns of the stock.But the above paper i think simply assumes the drift component as Mu +0.5*Sigma^2 instead of Mu - 0.5*Sigma^2 .Thereafter the paper correctly considers the term Mu...

hi please see if these links might be helpful: http://www.garp.org/media/1236437/careersinriskmanagement_lourdeslopez_112613.pdf https://www.bionicturtle.com/why-take-the-frm-exam/frm-jobs/ http://careers.garp.com/jobseeker/search/results/ Thanks

Hi @DebbieM ,appearing for both FRM L2 and CFA L@ is not feasable i think, i would suggest that you should postpone either of the exam and give one exam at a time like postpone CFA L2 and clear FRM L2 first. Thanks

Hi, Yes I agree with @brian.field Also visit the links: https://forum.bionicturtle.com/threads/cfa-after-frm.6120/ https://forum.bionicturtle.com/threads/cfa-after-frm.866/ https://forum.bionicturtle.com/threads/cfa-or-any-other-specific-course-after-frm.9264/ Thanks

Hi, •Standard deviation of two asset A and B portfolio, σp=√wA²*σA²+wB²*σB²+2*Cov(A,B)*wA*wB=√wA²*σA²+wB²*σB²+2*ρ(A,B)*wA*wB*σA*σB for perfect negative correlation,ρ(A,B)=-1 σp=√wA²*σA²+wB²*σB²+2*(-1)*wA*wB*σA*σB σp=√wA²*σA²+wB²*σB²-2*wA*wB*σA*σB σp=√(wA*σA-wB*σB)² σp=wA*σA-wB*σB( case1) or σp=...

Hi please see the CPD ebook: http://go.garp.org/garp-cpd-program-handbook-2015 thanks

Hi Yes i mean value of debt as the present value of the debt rather than face value,its not same as PV(L) which is the present value of the Face Value L discounted at risk free rate. Value of debt is the present value of the debt which we get after subtracting value of equity(BSM calculated)...

Hi, In Merton model its the other way around i think you get present value of equity E first through BSM then get the value of debt by using the equation Firm(Asset) = Equity + Debt, as V-E(different from face value of Debt L with maturity T,V being the present value of the firm). You can...