Quotea call is put from a hedger's perspective Daveangel, can you please explain this in some details? I could not understand the inner meaning.

Hi Anthis, what is this 'gates'? Can you please explain?Thanks,

So both you are saying that today's price must be "(>= 0)"? However I was wondering whether it would be "(> 0)", as I was told like that.Best,

Dear all, let say an instrument's value at it's maturity (european type) is (>=0). Then can I say that, it is always the case to have it's price before expiration is (>0). If it is not the case then is there be any arbitrage trade available?Best

<t>Dear all, I have started reading the baxter's book and stuck in the first page!!!Here he gave 1 example of horse-racing with 2 horses. And there winning probabilities (true probabilities) are 25% and 75%. Also the total bet placed on the 1st horse is 5,000 and on the 2nd horse is 10000Also the qu...

Hi all, can you please provide some good text books both on theoretical as well as practical on "Default (PD, LGD/ EAD) modeling?"Really appreciate for any pointer on that topic.Thanks

<t>Hi all, in Brownian bridge process, we fix starting point and ending point and let the intermediate values/realizations fluctuate. I am looking for some similar process where we fix and starting point and and the average value (for some pre-defined time interval) and let all intermediate values f...

Hi Bearish, can you please send some reference which market negative spot rate was found?Thanks,

Thanks daveangel for your reply. Can you be little more detailed? Actually, I could not get the intuition why long term bond portfolio will have more sensitivity. Thanks,

<t>Dear all, can I ask a very simple question here? Assume I have a portfolio of short term bonds and a portfolio of long term bonds. Which portfolio will be subject to more interest rate risk in term of the empirically? I do not want any mathematical proof but just need to get some intuition.Thanks...