Explain maintenance of future and option margins
Explain maintenance of future and option margins.
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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.
How can stocks are squeezed in the Black–Scholes framework when it falls dramatically?
What is a Wiener Process/Brownian Motion?
Explain Certainty equivalent as a function of the risk-aversion parameter.
In brief define each of the major types of international bond market instruments, noting their distinguishing characteristics.The major kind of international bond instruments & their distinguishing characteristics are as follows:
How many terms are in Black–Scholes equation contained?
Explain the factors that responsible for the recent surge in international portfolio investment (IPI)?The recent surge in international portfolio investments reflects globalization of financial markets. In particular, several countries have dere
Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 11%. They had 20-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 37% Preferred stock: Two thousand shares of preferred are outstanding
Which is associated to Sharpe Ratio?
What is the exact way of traders to use the gamma to calculate?
Explain the programme of study of Monte Carlo method.
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