Search results

  1. 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!
  2. 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!
Top