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80000

When D > K * (1 - r ^ (T-t)), which essentially means, dividends are greater than the interest you would earn on the money if you save it till the end.

Hey, Since sigmaP <= sigmaA + sigmaB, I think even VaR is <= weighted avg of component VaRs.....

decreasing volatility was for the question where the analyst felt that the hedge ratio was overestimated. Q was what cud b the reason for that. Answer is: decrease of spot price volatility.....

E Even I think, the question asked about whats the best bet for high volatility.... which is long straddle for sure.....

The option was on the future with strike price of 480 for $15. On exercise day, future was 490. So, a net loss of $5..... I guess, spot price was irrelevant here....

I think BSM can be used for both Eur and Ame calls, but not Ame Puts. American calls shudnt be exercised early and puts shud be exercised early and because of this, put prices cannot be calculated using BSM. There was a question asking about the payoff of a fwd contract in CAD: I think the...

Hey, This is a good compilation. My take on of the questions: 3) Regression graph between assets showed a negative slope, hence, one needed to assume correlation as -1 and choose the answer closed to sigma-p using this 4) Account balance on day 5 - definitely 18,800 5) Soyabean option - this...