# All Questions

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### Discount of Asian vs European vols

I understand the discount for Asian vs European vol is depending on time to expiry and length of averaging period. This makes sense intuitively; a short averaging period far away blurs into a single ...
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### discount factor question [closed]

really confused about this question, can someone please answer A project requires \$10 million dollars in initial investment. The projected revenue is$3 million dollars per year for the next 5 ...
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### Why are call options needed? [duplicate]

My question is actually less ambitious and more specific then the title may have lead you to believe. Suppose the interest rate is $25\%$ you have a stock at time zero price of $S_0=50$ and at time 1 ...
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### VaR for portfolio of funds

Let's assume we need to calculate a 1-day VaR for a portfolio of funds. Funds are traded, they can be bought and sold every day. We know exactly what the assets in each fund are. What is the right way ...
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### Replicating strategy in the Black-Scholes model

I have a two-asset Black-Scholes model for a financial market: $dB_t=B_t r dt$ $dS_t=S_t(\mu dt+\sigma dW_t)$ I introduce a European claim $\xi=max(K,S_T)$ with maturity $T$, for some fixed $K$. I ...
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### Optimal mortgage rate strategy

When buying a mortgage, you can choose to "lock in" a rate at any point within 60 days of your closing date. Once locked in, you can't revert. This makes it a secretary problem - in the traditional ...
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+50

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### Is there any reasonable way to short-sell Bitcoin [migrated]

It is not an official currency (yet?) but definitely has a market, and as such, I might be intrested in short-selling some. Are there any reliable, way to bet against it?
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### Distribution of profit/loss for retail traders in FX

I've heard that 90% of retail investors in FX lose money. I want to analyze this in more detail. Question: Is there some literature that describes the statistics of profit/loss for retail traders in ...
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### Hedging credit risk using Put equity options

I am looking for some paper or similar which deal with this topic: hedging bankruptcy on firm's debt using Put options written on that firm's equity price. This should be based on the assumption that ...