State the term dispersion trading
State the term dispersion trading?
Expert
Dispersion trading is a strategy including the selling of options on an index against buying a basket of options upon individual stocks. This strategy is a play upon the behaviour of correlations throughout normal markets and throughout large market moves. When the individual assets returns are extensively dispersed then there may be little movement into the index, however a large movement in the individual assets. It would result in a large payoff on the individual asset options other than little to payback upon the short index option.
Explain: a pre-emptive right protect the interests of existing stockholders.
Who introduced equity option formula for pricing interest rate options?
Janice Colangelo heads the Training Centre of the large HR Consulting firm EMT Consulting. The firm has three major departments: Recruitment, Training and Career Services. The Training Centre provides management training for employees of various businesses. Recruitment provides recruitment service
What is Colour for option value?
Why are most futures positions closed out through a reversing trade instead of held to delivery?In forward markets, about 90 percent of all contracts that are primarily established result in the short making delivery to the long of the asset und
What is Crash Metrics?
What is the difference between a Quant and an Actuary? Answer: The answer of this question is difference between an Actuary and a Quant is ‘Lots’. They c
How can the market decide the fair value of a bond?
Explain the difference between mortgage bond and a debenture?
Explain the important properties of Brownian motion.
18,76,764
1922937 Asked
3,689
Active Tutors
1429929
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!