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by anjoazul
October 11th, 2021, 10:07 pm
Forum: Trading Forum
Topic: What is the approach for the option pricing in real-world transaction
Replies: 1
Views: 503

What is the approach for the option pricing in real-world transaction

As the BS formula is not that useful in the real-world transaction for the option pricing. I want to know, in the daily transaction, what are the realistic approach the traders are employing to calculate the price of options. Thanks!
by anjoazul
September 21st, 2021, 9:13 pm
Forum: General Forum
Topic: How does FED quatify inflation expectation?
Replies: 4
Views: 614

Re: How does FED quatify inflation expectation?

Thanks Quantie. Do you think if the FED buys too much TIPs and injects liquidity in the market, the fact will also strengthen the inflation expectation?
by anjoazul
September 21st, 2021, 12:15 pm
Forum: General Forum
Topic: How does FED quatify inflation expectation?
Replies: 4
Views: 614

Re: How does FED quatify inflation expectation?

Thanks you Quantie! Could you pls explain a bit more bout " look at the incremental purchase of TIPS as part of QE vs new supply of TIPS". Thanks!
by anjoazul
September 20th, 2021, 10:07 pm
Forum: General Forum
Topic: How does FED quatify inflation expectation?
Replies: 4
Views: 614

How does FED quatify inflation expectation?

As I understand the FED considers the employment and inflation expectation when defining the monetary policy. I wonder what is the quantitative indicator or traded instrument FED uses to derive this expectation of inflation? I don't believe the Break Even Inflation is a good explanation, because thi...
by anjoazul
April 4th, 2020, 7:52 pm
Forum: General Forum
Topic: How could we use 5 year Tips minus 2 Year Tips to get insight of Inflation Expection?
Replies: 0
Views: 4896

How could we use 5 year Tips minus 2 Year Tips to get insight of Inflation Expection?

I read a article where the author used the difference the between yields of 5 year Tips and 2 year Tips as a proxy of the inflation expectation. Could anyone explain me what is the logic behind this approach. Thanks.
by anjoazul
December 20th, 2018, 2:05 pm
Forum: Economics Forum
Topic: Is the unrealized capital gain from investment in stock taxable in Colombia?
Replies: 4
Views: 9199

Is the unrealized capital gain from investment in stock taxable in Colombia?

Hi everyone! I’ve just heard that the unrealized capital gain coming from the investment in stock mark market, not the dividend, will also be taxed in Colombia. Is that true? More detailed info regarding this issue will also be appreciated. 
by anjoazul
October 29th, 2018, 5:30 am
Forum: Trading Forum
Topic: What causes the spread between WTI and Bent
Replies: 3
Views: 4636

Re: What causes the spread between WTI and Bent

@ppauper Thank you so much for your explanation. 
by anjoazul
October 28th, 2018, 3:47 am
Forum: Trading Forum
Topic: What causes the spread between WTI and Bent
Replies: 3
Views: 4636

What causes the spread between WTI and Bent

Could anyone explain what leads to the spread between WTI and BRENT oil price, and what will be the upper limit of the spread to cause export of oil from US to other country. 

Thanks!
by anjoazul
October 2nd, 2018, 1:16 pm
Forum: Technical Forum
Topic: Logic between Tips and Inflation Surprise
Replies: 0
Views: 2006

Logic between Tips and Inflation Surprise

Hi everyone! 
I've heard a relation which says that if the actual inflation is lower than the inflation expectations, then the price of Tips and gold goes up, and vice versa. Could anyone explain the logic behind this phenomenon?
Thanks! 
by anjoazul
June 19th, 2017, 3:10 pm
Forum: General Forum
Topic: Option Pricing Using Binomial Tree
Replies: 2
Views: 930

Re: Option Pricing Using Binomial Tree

Dear Paul, thank u very much for your quick reply and now I finally understood the issue and get more interest in studying with your masterpiece. Thanks!
by anjoazul
June 19th, 2017, 2:28 pm
Forum: General Forum
Topic: Option Pricing Using Binomial Tree
Replies: 2
Views: 930

Option Pricing Using Binomial Tree

Hi everybody! I'm reading the chapter 3 about option pricing in "FINANCE Paul Wilmott Introduces Quantitative Finance" , in 3.17 VALUING BACK DOWN THE TREE,  an example says" with S = 100, δt = 1/12, r = 0.1(risk free rate), and σ = 0.2... Using these numbers we have u = 1.0604, v = 0...