Explain maintenance of future and option margins
Explain maintenance of future and option margins.
Expert
With short and futures options there are margins also to be paid, generally daily, to a clearing house like a safeguard against credit risk. Therefore if prices move against you, you need pay a maintenance margin. It will be based upon the prevailing market values of the futures and short options.
Why is structural approach to modelling risk of default born?
The United States contain experienced continuous present account deficits since the early 1980s. What do you think are the foremost reason for the deficits? What would be the consequences of continuous U.S. present account deficits?The present a
How is the implied volatility calculated?
State the term Option Adjusted Spread? Answer: The OAS stands for Option Adjusted Spread is the constant spread added to a forward or a yield curve to match the mark
What is the significance of the term additional funds needed?
You are trying to save to buy a new $150,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 5.5% annual interest rate on its accounts. How long will it be before you have enough to buy the car?
Elucidate the advantages and disadvantages of the aggressive working capital financing approach?
Stock price is $98; and European call option struck at $100 along with an expiration of nine months has a value of $9.07. There nine-month, compounded continuously, interest rate is 4.5%. So find out the value of the put option with the same strike and expirat
Describe the relation between net present value and the value of the firm?
Explain Strong-form efficiency in Efficient Markets Hypothesis.
18,76,764
1929138 Asked
3,689
Active Tutors
1441265
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!