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visits member for 1 years, 1 months
seen Mar 5 at 2:49

Feb
28
accepted Effect of interest rate on options prices
Feb
27
awarded  Student
Feb
27
asked Effect of interest rate on options prices
Feb
27
awarded  Scholar
Feb
27
accepted How to hedge a forward contract
Feb
27
comment How to hedge a forward contract
actually, if i just short a futures contract at 4000 one year from now, technically i'm hedged right? tee hee
Feb
26
comment How to hedge a forward contract
yes exactly. and this question came from a very well-known firm.
Feb
26
comment How to hedge a forward contract
ok understood. but the interviewer insisted that it was possible for me (not the seller) to create an arbitrage opportunity. if this is certainly impossible, that i think it was unfair for me to be dinged lol.
Feb
26
comment How to hedge a forward contract
he assumed the forward contract is free, and also that the price of NASDAQ is below 4000, to be exact, around 3600 per today's price.
Feb
26
comment How to hedge a forward contract
that's exactly what i said. but the interviewer told me that I'm supposed to be able to create an arbitrage strategy from this, i.e., there is no negative cash flow and at least one positive cash flow. i ended up not getting the final round interviews..
Feb
26
asked How to hedge a forward contract
Jan
28
awarded  Peer Pressure