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I am not sure about the offer price... When the financial institution tries to liquidate the large position [n] let's say n > 10, the spread widens. I understand why the bid price widens, as there is a surplus, a lot of supply in the market. But I can't get why the offer price widens.

Quote: 'put-call parity shows that the price exposure from writing a covered call is the same as the exposure from writing a naked put.'. Put-call parity is c+Ke -rt = p+S0. We know that S0 - c is a covered call and -S0 + c is naked put but what about Ke-rt. I know that we don't have it in the...

Hello! May someone explain how to get the distribution like below. We cancel out T in the mean by dividing by 1/t but we also should cancel the T out in the variance part but after canceling we still have sigma/T but why not just sigma. So we have (mu - sigma2 / 2) * T, sigma2 * T and all this...

What does 'There is no cost involved in the reduction of risk exposures through diversification. Consequently, there is no compensation for taking asset-specific risk. ' mean?

What does 'If a normal distribution is time-varying, then its unconditional distribution will be heavy-tailed.' mean?

May someone explain how to interpret this part: see picture.

What does it mean: 'The inf is only needed when measuring the quantile of distributions that have regions with no probability'?

What does it mean: 'where R(x) denotes the possible realizations rendered from the random variable X'?

Hello everyone, Appreciate may not be many of us sitting the exam in Russia however if anyone interested please comment below. Thanks! Denis