What are the competing effects in a dispersion trade
What are the competing effects in a dispersion trade?
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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.
Explain Strong-form efficiency in Efficient Markets Hypothesis.
Categorize the issues of Knight.
Mr. James K. Silber, an avid international investor, only sold a share of Rhone-Poulenc, a French firm, for FF50. The share was bought for FF42 year ago. Now the exchange rate is FF5.80 per U.S. dollar and was FF6.65 per dollar a year ago. Mr. Silber attained
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Why do you think the empirical studies regarding factors affecting equity returns mainly showed which domestic factors were more significant than international factors, and, secondly, that industrial membership of firm was of little importance in forecasting t
Why does put-call parity not hold, when option is American?
What is the reason that variation coefficient mostly considered a better risk measure while comparing different projects than the standard deviation?
How is Gamma hedging more precise form of hedging that theoretically eliminates?
Explain the second way of calibration if we can’t measure that parameter.
What are the reasons that Inventory is sometimes thought of as a needed evil.
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