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.
Explain any benefits you can think of for any company to cross-list its equity shares on more than one national exchange?A MNC that has a product market presence or manufacturing facilities in many countries may cross-list its shares on the exch
Who introduced equity option formula for pricing interest rate options?
What are Pros and cons of different methods? Answer: Table illustrate
Define the steps of getting governing equation of Girsanov’s Theorem?
Why is the money given time value?
Define the term pricing derivatives in Monte Carlo simulations.
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The March 2000 Mexican peso futures contract holds a price of $0.11695. You believe the march spot price will be $0.08500. In which speculative location would you enter to try to earn profit from your beliefs? Illustrates your anticipated profits letting yo
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Explain boundary/final conditions in Monte Carlo method.
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