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    Does selling a call option also counterparty risk free?

    That makes sense. Thank you, David!
  2. L

    Does selling a call option also counterparty risk free?

    Hello, we know that selling a put option has no counterparty risk as you would be expecting to pay only. How does selling call option work? Thanks!
  3. L

    M^2 Modigliani

  4. L

    OTC derivatives pricing question

    Hi guys, I remembered some question marked "using mid price instead of bid price in OTC derivatives pricing" as implementation error in model risk. But is it required by Basel that banks have to use bid price? why is it an error? Thanks!
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    Portfolio Unexpected Loss (ULp) & Risk Contribution (RC)

    Thank you, Nicole and David! It's really helpful.
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    Portfolio Unexpected Loss (ULp) & Risk Contribution (RC)

    Hello, guys, May I just confirm that the risk contribution and unexpected loss calculations are all dropped in 2014 part 2 exam? I couldn't find those formulae anywhere... I'm just a little worried as I saw them a few times in the past FRM practice exams. Thanks a lot in advance!
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