Or just take on a forward... but that's the point isn't it? There's FX risk unless it's hedged. Actually, come to think of it - how *would*...
How is it difficult to see that you have a very large FX exposure? Say you want to buy $100 worth of a japanese asset. Today the exchange rate...
Really? Please show why it does not work. It's easy to argue that consumer debt is indeed problematic because of the perverse incentive...
I think your belief that bank == the middle man is faulty. In many ways, banks function more as a conduit for risk-pooling rather than just...
Good luck with that... I believe there has only been on non-institutional trade in CDS ever - it was done after months of paper work (the guy who...
At this point it's pretty much just a quoting convention... I don't think any is trading with it anymore (dynamic hedging with BS delta is pretty...
Think about it.... a stop-loss when your $50 stock drop more than $1 is the same as delta replicating a $49-strike put where you maintain an...
Explain what?
If we are going with game theory as a general framework for disciplined and rigorious thinking process, then I'll agree with you completely. A lot...
I'm going to have to go with this opinion. I studied game theory on a PhD level... Game theory is a framework for understanding how one or more...
In general, Masters in Financial Enginnering is a fad. It's worth very little. The actual quantitative trading jobs usually require a PhD or...
A BA in econometrics from oxford or cambridge is one of the very very few undergrad degrees that can realistically expect to make around 80-100k...
I'd be hard pressed to find anyone (academic or otherwise) who actually believes in strong, classic random walk. Sure, we use iid random walk for...
Random walk isn't the only form of randomness, you know. You know that, right?
Sigh indeed. no, if you had any statistical training, you will realize that this is not at all what the test is saying. The test is saying that...
More than that - his analysis simply showed (in a fairly poor way, I might add) that there's serial correlation in daily returns. This is very...
(1) There's reserve enough to pay you. Again, consider the management fee alone they bring in and your salary. You mean nothing. (2) Yes,...
I work on the buy side, though not a hedge fund in a front office capacity. If you aren't getting retained headhunter calls at this point,...
Not to take away from p&d's nice gain, but we were talking whether ABK is toxic from the perspective of holding on to it for more than few hours....
That's not true. They don't insure ratings, they insure the principal and coupon payments (see Orange County's default years ago). The bonds (like...
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