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Hi David, I have a fairly basic question but it's been bugging me. I have found that some people use a different formula to compute credit spread, namely: 1-(1+risk free yield)/(1+risky yield) The difference in result with formula of -1/T*ln(D/F)-Rf is often not massive but it has already led...

Hello, I was just wondering something that may be fairly basic: why do we express the cost of liquidation of an entire book as s*alpha/2, when this could be simplified? Namely, the mid-market price components cancel each other out, and we could just have 0.5*(offer-bid)*number of positions...