How are short or future option margins paid at credit risk
How are short or future option margins to be paid at credit risk?
Expert
With futures and short options there are also margins to be paid, generally every day, to a clearing house like a safeguard against credit risk. Therefore if prices move against you, so you may have to pay a maintenance margin. It will be based upon the prevailing market values of the short and futures options.
How is Sharpe ratio making sense when Central Limit Theorem is valid?
Determine the efficiency of finite differences?
Describe the concept of the Sharpe performance measure.The Sharpe performance measure (SHP) is a risk-adjusted performance measure. This is describing as the mean excess return to portfolio above the risk-free rate divided by the portfolio's sta
Illustrates an example of traditional Value at Risk by Artzner et al?
Why is Crash Metrics good risk tool?
What is the validity of the Efficient-market hypothesis?
Why Does Risk-Neutral Valuation Work?
What are the important observations about hedging error?
Mr. James K. Silber, an avid international investor, sold a share of Rhone-Poulenc only, a French firm, for FF42. The share was bought for FF42 year ago. The exchange rate is FF6.15 per U.S. dollar and was FF6.65 per dollar a year ago. Mr. Silber acquired FF4
Explain an example of superhedging.
18,76,764
1939389 Asked
3,689
Active Tutors
1436370
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!