Recent content by buffting

i agree with ur method - but in terms of the exam - say the delta was not given - 7city says the answer should be just divide the portfolio value by the current index value * 10 and totally ignoring the strike value of the put. is that right?

??

392

a) 10m / 5100 *10 = 196 b) Delta is ATM so ~ 0.5 ...not too sure what after that?

Q: A trader is hedging a £10m portfolio worth of shares using stock index options. The index is currently trading at 5100 pts and a put option with a strike of 5000 is available. Given £5 per half index point - how many contracts needed? 7city say the answer is divide the portfolio amount by...

was hypothetical situation haha - just part of me training getting knowledge from you guys - which i appreciate - not actually advising anyone. It is actually hedging against the view (EUR/USD going lower) being wrong rather than being speculative. how would the strategy differ if he were...

If: Client looking to buy EUR/USD 3mth basis - but thinks market will move higher before going lower. What strategy could I employ? Ideas: Risk is market continues to increase or stagnates So you would want to buy call option accordingly right? Any other strategies that would be beneficial to...

If: Client looking to buy EUR/USD 3mth basis - but thinks market will move higher before going lower. What strategy could I employ? Ideas: Risk is market continues to increase or stagnates So you would want to buy call option accordingly right? Any other strategies that would be beneficial to...

liquidity - provided by market makers - and electronically price discovery - ? risk transferal - the brokerage is still there for transfer of risk - but no need for brokers to be there to monitor margin etc...? anonymity - electronic trading is anonymous no? algorithms to put large trades...

so client relationships - satisfaction - perks right...

please enlighten me Gooseman...

whats the future of institutional brokering (not inter dealer)? Specifically in the metals / FX / futures arena? The globalisation and advanced electronic world means that clients dont require brokers to inform them where markets are? They just want electronic trading platforms to execute...

recieved a job offer recently... if i resigned on day bonus is paid into account - the new job starts on the 3rd week of the 4 week of notice period. frustrating. is signing a contract that overlaps with the notice period of current company legally/contractually against the law?? doubt new...

Hi guys - appreciate most of you here are probs traders and might have some harsh views on brokers etc but grateful if you could see it from my perspective. thanks. working in market risk for 2 years - CFA Level 2 - excellent degree from Warwick. struggled (lack of opportunities etc) to move...

so platforms?