No one has an idea or is the response too obvious?

<t>For the 1*4 European swap options I have as input :Swap / Cap Data: Principal : 100 Swap Start (Years): 1.00 Swap End (Years): 5.00 Swap Rate (%): 6.00% Pricing Model: Volatility (%): 1.00%I checked 'Imply Volatility' and chosen 'Rec. fixed'Term Structure Time (Yrs) Rate (%)1 6.000%2 5.500%3 6.00...

<t>QuoteOriginally posted by: blueraincapwhy not try another business area.there is life outside bankingBecause my profile is really oriented Banking and it is maybe easier to try to do something else in Finance (structurer, portofolio manager, etc.) rather than a career change in another industry. ...

<t>QuoteOriginally posted by: bearishQuoteQuoteI start seriously consider bearish implicit advice...but at the same time I am sure that I am not the only struggling with this example.Don't understand what this means but I think the calculation of u() and v() is now clear.I was just imploring him not...

<t>Then, this mean the 10% coupon provided in the book was in fact irrelevant for the exercise?I found this example a bit misleading due to lack of explanation in the Hull's book. I start seriously consider bearish implicit advice...but at the same time I am sure that I am not the only struggling wi...

<t>QuoteOriginally posted by: daveangelQuoteOriginally posted by: MoonDragonI have just found my third hull book (6th edition) in which apparently I previously made this exercise without any issue (more than 3 years ago).The formula I used was :u(t1) = 0.5/(1.025)+0.5/(1.025)^2u(t2) = 0.5/(1.025)+0....

QuoteOriginally posted by: Cuchulainn"During the last five years, I ran a company with a business partner where we were equally providing freelancing services. "What kind of service?Consulting in Finance (application development, business analysis, etc.).

<t>Just a quick update to highlight that it seems that I was struggling with fairly basic problems that I successfully resolved few years ago using another edition of the same book : certainly the pressure of short deadline has its part in this issue but I will stick my search for quant roles (I alr...

<t>I have just found my third hull book (6th edition) in which apparently I previously made this exercise without any issue (more than 3 years ago).The formula I used was :v(t1)=1/(1+0.025)^2v(t2)=1/(1+0.025)^4v(t3)=1/(1+0.025)^6....u(t1) = 0.5/(1.025)+0.5/(1.025)^2u(t2) = 0.5/(1.025)+0.5/(1.025)^2+...

<t>Normally I should say that you are right...but I am struggling because I used to be an IT Quant then a Business Analyst then an entrepreneur.My mistake was to not have deeply revised when I finished my master degree (and did not know any forum like wilwott) by doing the main exercises in the Hull...

<t>QuoteOriginally posted by: daveangelQuoteOriginally posted by: MoonDragonThanks a lot Dave,This mean that Hull should have written the variables in this more easy way :v(t) : Present value of $1 received at time t = Discount factor at time tu (t): Present value of payments at the rate of $1 per y...

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<t>Hi all,During the last five years, I ran a company with a business partner where we were equally providing freelancing services. However since the last two years I worked in another activity than Finance for the company but this new activity was not worth and as a result I would like to come back...

<t>QuoteOriginally posted by: muaddibI can't speak to the best practices in your particular market, but the general technique for calibrating a model is: 1) Work out pricing formulas for observable products. That will give you a function of whatever parameters your model has.2) Choose a measure to d...

<t>Thanks a lot Dave,This mean that Hull should have written the variables in this more easy way :v(t) : Present value of $1 received at time t = Discount factor at time tu (t): Present value of payments at the rate of $1 per year on payment dates between time zero and time t = (1-b(t))/rThat really...