Why is dispersion trading become unsuccessful
Why is dispersion trading become unsuccessful?
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• This is too detailed a strategy to cope along with large numbers of contracts along with bid–offer spreads. • You must delta hedge the positions that could be costly.• You should be careful of downside throughout market crashes.
How must you hedge discretely?
Explain the reasons why all apparent arbitrage opportunities cannot be exploited.
Explain the terms: diversifiable and non-diversifiable risk. Which one is more important to financial managers in business firms?
Explain: warrants are not often exercised unless the time to maturity is small.
Elucidate the advantages and disadvantages of the aggressive working capital financing approach?
You are an investment banker advising a Eurobank regarding a new international bond offering it is considering. The proceeds are to be utilized to fund Eurodollar loans to bank clients. What sort of bond instrument would you suggested that the bank consi
Explain the tool of Discretization methods in Quantitative Finance.
Why a different type of mathematics in Quantitative Finance is important?
We focus more on cash flows rather than profits when estimating proposed capital budgeting projects. Explain.
How two stocks fully correlated over short timescales?
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