# All Questions

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### Why is variance of brownian geometric motion equal to t?

I know that, for the random variable $B_t$, $B_t \sim N(0, t) = X\sqrt{t}$ where $X \sim N(0,1)$. However, what I am confused by is why the variance of the GBM variable is assumed to be $t$ in the ...
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### Why does the rate of inflation vary over time?

Interest rates have varied significantly over the last 50+ years (source: https://www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart ). Is it possible to comprehensively and succinctly ...
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### Factors impacting default risk

Currently I am wondering if there is any link between the default risk of an organisation and it's carbon footprints. Currently there are many regulations coming to address the climate risk most ...
116 views

### Future Value: the functions in Excel, Matlab and Numpy Financial don't work when the number of periods is large

The Future Value function and its expected behaviour Excel's function FV(rate, nper, pmt, pv) calculates the future value of an investment based on periodic, ...
212 views

### Market price versus theoretical price of varswaps

When I traded varswaps several years ago, for some indices there was a significant mismatch between market price and theoretical price. The theoretical price assumes continuous monitoring and infinite ...
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### A decent model to calculate hedges

Is there an option pricing model that wouldn't be too time consuming to set up in Python (for example) and that would provide better delta hedges than Black-Scholes? This would be mainly for equity ...
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### Futures positioning reported by CFTC

How is the net futures position calculated by the CFTC? For instance, GBPUSD net contract is positive in the CFTC report, what does it mean given that for each buyer there is a seller?
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### Buying long dated call options at the bottom of a crash [closed]

Thanks in advance. When the S&P corrects badly, many new people like me may want to buy a call option 2 months out. But isn't volatility high during the crash? If the S&P corrects and heads ...
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### How does one explain the negative returns around the event of stock inclusion in DAX indices?

Greetings there friends, I am doing a small research on the effects of the event of inclusion and exclusion of a stock from DAX indices (german indices), to cut the story short, i have downloaded data ...