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.
State the term dispersion trading?
When is the close relationship breaks-down in hedging reasons?
Remark on the following statement: "As the U.S. imports more than it exports, it is essential for the U.S. to import capital from foreign countries to finance its present account deficits."The statement presupposes that the U.S. present account
Explain the Jump-diffusion models in an option-pricing.
Describe the relation between net present value and the value of the firm?
according to decision theory approach ,which is the core of management
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