Hi, I am trying to use binomial tree to price options (European & American) with discrete dividends. Because the unit for time is year, will the price/greeks be correct around the ex-date? Or I have to do the time-step as day?

Thanks! I would think 2) is the correct definition.. but for a trading software, 1) is more useful... but how would you call this? Still theta? or time decay?

<t>For the financial software you are using, is the theta equal to1) P(t+1) - P(t), everything else remains unchanged OR2) dP/dtFor me, it seems 1) is more helpful but 2) seems to be more correctAnd if you are using the system, do you prefer 1) or 2)?And a really really dumb question.. for a simple ...

I saw in Tradesports, under presidential elections, there are contracts "BUSH.ELECTORAL+300", etc and contract "BUSH.ELECTORALVOTES". Think can trade it like binary options and "BUSH.ELECTORALVOTES" as the underlying?

What will happen to a CDS buyer when the bond defaults? I kinda heard of 2 versions: 1) receive PAR and put the bond to the CDS seller 2) receive a pari passu bond and put the defaulted bond to the CDS seller. WHich one is correct? Or both?

What does this stand for? Is this a day counting convention? I saw it on someone's terms of a swap. Thanks.

should we also incorporate the credit risk? i.e. when the stock price fall below a certain level, the firm will go bankrupt. In that case, it will not reach 100 with probability 1. Does that make sense?

Isn't that I would try to sell at the highest and then buy at the lowest, if I could predict correctly, but not trying to rehedge every second, even in absence of transaction cost?

Is there any model to decide an optimum price to do the rehedging when you are gamma trading? for example, something like getting the daily swings of past 30 days, using GARCH, etc...

<t>What are the differences between CB Asset swaps and ASCOTS, apart from convenience (due to the lack of intermediate cashflows for ASCOTs)? I mean how does an ASCOT differ from an asset swap in valuation and risk management perspective? When is the probable situation to use ASCOT and when to use a...

<t>How did people price options before B&S published their nobel-winning paper in the 70s? As B&S seems to be a convention for pricing options everywhere now(at least for vanilla), it is difficult to imagine how the academic and industry is like before B&S. How did the B&S affect the...

I saw this on the Jobs Board. What is high frequency trading?

<t>Anyway, I have asked the workbook_open subroutine to call the other subroutine and it works. so i won't bother with this anymore. thanks for help.However, I could resize the menubar even if i set its width and height in the codes. how could i achieve this? I didn't set protection for the menu bar...

It is:Set cbar1 = CommandBars.Add(Name:="Custom1", Position:=msoBarFloating)cbar1.Visible = Trueand the error message is Object variable or With block variable not set

<t>Hi, is it possible for me to create a menu bar and put it in a position I like? I know I could put it in some pre-defined position(top,right, etc) but is it possible to put it in some arbitrary position instead of those?Also, I tried to create a menu bar in a macro and it worked successfully but ...