What are the competing effects in a dispersion trade
What are the competing effects in a dispersion trade?
Expert
The competing effects within a dispersion trade are as follows:• Gamma profits versus time decay upon each of the extended equity options• Gamma losses versus time decay as the latter a source of profit, on the short index options• Across the individual equities, the amount of correlation.
How much will transaction costs decrease the profit?
How are short or future option margins to be paid at credit risk?
Where can we get incomplete markets?
How can stocks are squeezed in the Black–Scholes framework when it falls dramatically?
Who gave option-pricing ability to the masses?
What is Static Hedging?
When is an exploitable opportunity usually seen for excess returns?
What are the reasons that Inventory is sometimes thought of as a needed evil.
Explain probability of some buses having arrived when the Poisson process is utilized.
Explain Girsanov’s Theorem in briefly.
18,76,764
1946784 Asked
3,689
Active Tutors
1419470
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!