Explain maintenance of future and option margins
Explain maintenance of future and option margins.
Expert
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.
Describe the advantages & disadvantages of closed-end country funds (CECFs) relative to the American Depository Receipts (ADRs) as a means of international diversification.CECFs can be utilized to diversify into exotic markets that are other
Why is volatility annualized standard deviation of return?
Illustrates an example of bid/offer on a call in put–call parity?
Illustrates an example of Frechet distribution?
What is implied volatility? Answer: Implied volatility is number into the Black–Scholes formula which makes a theoretical price equal a market price.
Normal 0 false false
How is Value at Risk Used?
Differentiate in brief a defined benefit and a defined contribution pension plan.
Why do Quants like Closed-Form Solutions?
Given: price of Nokia shares on the Helsinki stock exchange=12 euros, exchange rate=$1.3/euro, price of the ADR on the NYSE=$15 and each foreign share translates into 1 ADR. Show the actions you would take to make risk free arbitrage profits.
18,76,764
1929178 Asked
3,689
Active Tutors
1448301
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!