Historical Perspective Correlation Products Building Blocks: Vol Products • Realized variance: RV • 1 = n ∑ T t =1 St (ln( )) S t −1 2 OTC products to trade realized variance: – Delta-hedged options (straddles) – Volatility swap – Variance swap Listed Products – Futures on realized variance • Implied Correlation • From index and single-stock implied vols‚ one can extract the average pairwise Implied Correlation (= IC) embedded in option prices by the market
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VUCA is an acronym used to describe or reflect on the volatility‚ uncertainty‚ complexity and ambiguity of general conditions and situations. The common usage of the term VUCA began in the late 1990s and derives from military vocabulary and has been subsequently used in emerging ideas in strategic leadership that apply in a wide range of organizations‚ including everything from for-profit corporations to education. Meaning The deeper meaning of each element of VUCA serves to enhance the strategic
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This topic is related to the previous one‚ since the only way to being succesful in such complex international agreement is by keeping focused on the long term‚ not the short one‚ which‚ by the way‚ will have always a political cost. 3. Currency volatility‚ which has a very similar effect than the preceding paragraph. ------------------------------------------------- Mercosur proposed
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Toyota Motor Company has been a strong competitor in the global automobile market since its inception in 1937. Today Toyota has become a globally recognized brand and has won the coveted spot as the worlds top selling auto manufacturer‚ with 17% total market share. Despite many challenges Toyota has remained relatively financially stable consistent with the S&P 500 and continues to provide low cost high efficiency vehicles appealing to various demographics with the implementation of a high end
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traders is b. The LIBOR rate 3. Duration of a ten-year 6% coupon bond with a face value of $100 is a. Less than 10 years. 4. Which of the following are always positively related to the price of a European call option on a stock? c. The volatility 5. When we talked about Vega hedging‚ if a portfolio has 1000 shares of SPY and 10 contracts of at-the-money December 2013 put option on SPY (and nothing else in the portfolio)‚ is the portfolio vega neutral? c. No‚ the portfolio can never be
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Post-Modern Portfolio Theory PMPT Definition‚ Investment Strategy‚ and Differences With MPT By Kent Thune See More About alternative investing build a portfolio mutual fund analysis See More About alternative investing build a portfolio mutual fund analysis Definition: Post-Modern Portfolio Theory (PMPT) is an investing theory and strategic investment style that is a variation of Modern Portfolio Theory (MPT). Similar to MPT‚ PMPT is an investing method where the investor attempts to take
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Question 1. Metapath’s capital structure and rounds of financing Analyze Metapath’s capital structure‚ in particular the various forms and prices of preferred stock from the multiple rounds of financing. How has this capital structure affected the offer from Robertson & Stephens? How would RSC’s participating preferred interact with other tranches of preferred stock? The RSC offer of $11.75 million is more than Metapath
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The War of the World Niall Ferguson argues throughout The War of the World that “the twentieth century was the most violent global century in history‚ due to economic volatility‚ ethnic conflict‚ and empires in conflict”. Ferguson argues this point by presenting concepts such as the Sino-Japanese War‚ the Holocaust‚ World War I‚ World War II and the Armenian Genocide. However‚ as Ferguson presents these ideas to argue his view‚ he does so in a manner that portrays him as a revisionist. One of
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International Economics and Business Department “Impact of financial crisis on exchange rate” Table of Contents INTRODUCTION 3 1. Comparison of three episodes 5 2. INTEREST RATE DIFFERENTIALS AND EXCHANGE RATE CHANGES 12 Conclusion 17 References 18 INTRODUCTION Financial crises are often associated with significant movements in exchange rates‚ which reflect both increasing risk aversion and changes in the perceived risk of
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Alternative Investments: Alternative Energy and Oil: Literature review Kevin Meyer‚ Kevin@meyermail.ch Submitted 12/04/2010 Executive Summary Research Purpose In order to build a financial product on a sound theoretical basis‚ I analysed the literature available on or related to the topic: “Alternative energy and Oil”. The aim is to verify the hypothesis of correlation between the variations of the price of oil and alternative energy companies‟ stock valuation. Research Design I searched
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