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Fundamentals: Derivatives

Risk Assessment: Scenario Analysis and Value-at-Risk

The derivatives Greeks are tools derivatives end-users employ to describe and to characterize the various exposures to fluctuations in financial prices inherent in a particular position or portfolio of instruments.…

Fundamentals: Derivatives

Risk Holes and Liquidity Risk: Definition and Examples

Professional investment managers use a variety of sophisticated tools to measure risk. Two important dimensions of risk are described as risk holes and liquidity risk. Risk Holes and Liquidity Risk:…

Fundamentals: Stocks

What’s a dividend payment?

What are dividends? The history of dividends began when companies were deemed to be legal entities in their own right under the law.

January 27, 2015
7 mins Read

Fundamentals: Derivatives

Greek Options: Intro to Option Strategies

Greek Options are specific risk aspects that capture the sensitivities of an option value to market parameters such as time, interest rate and volatility. An important aspect to consider in…

Fundamentals: Derivatives

Bank and Over-The-Counter Derivatives: Organizing by Asset Class

This article will provide a general overview of the different ways to organize a dealing room operation for over the counter (OTC) derivatives and the ways in which the dealing…

Fundamentals: Derivatives

Option Pricing: How Are Options Priced?

The Black-Scholes formula includes some key assumptions about options pricing that are important for traders to understand. Option Pricing The Nobel Prize in Economics in 1997 was awarded to Robert…