What is a "convexity adjustment" in pricing interest rate derivatives?Could anyone provide a non-mathematical, easy to understand explanation please?Thanks.

A clear, non-mathematical answer is desired.Thanks.

<t>Hi,I've actually tried it in online tournaments (small buy-ins though) and I can state it doesn't work when the opponent risk aversion is low.On another note, Sklansky himself doesn't use it.Also it's hard to judge whether any poker strategy is effective until you have a big enough sample (1,000 ...

<t>Hi,At NL Hold 'Em tournaments I'm sure attempts have been made to model an optimal "move in" strategy before the flop.However, such strategies work best when the buy in is really big and players are afraid to call.The question is, are *you* willing to risk $10,000 at the Big One on testing a mode...

Gekko: If he owned a funeral parlor, no one would die!

Simple - just buy a zero or find a Triple A bank that would take a fixed rate accruing deposit for 20 years (effectively selling you a zero) for that tiny size (shop around for the best price).

Hi,How does one get into proprietary trading?If one starts at a small firm prop trading - is it possible to move into a large IB doing prop trading later on?Is it possible to trade for say a small hedge fund and then move to prop trading at a large IB subsequently?

Fellow Posters,Have you ever wondered if you've missed an opportunity somewhere?If you've been managing your career wrong?If your classmate back from not so long ago MBA days is now a director at a bulge bracket and you are making much less money?Just venting.

<t>Susan,I can see your point - but please understand what I am trying to do.I have a finite amount of time (i.e. less than 1 year and trying to balance a job full-time) and I need to find the shortest route from A (my maths skills now) to B (maths skills needed to complete the Oxford test).I don't ...

Greetings,I have been going through Stroud's Engineering Mathematics.It looks like it is the Answer.If I can plow through Stroud's first and second books, do I have enough tools to complete the Oxford test?

Liquidity = the ability to convert an asset into cash at the least cost (cost described as a function of time and discount from fair value)

Hi again,What about if I read the engineering mathematics book by Stroud and do all the exercises (from cover to cover)?I believe the Stroud engineering maths book is equivalent to a year of engineering courses.Thanks.

<t>Hi,How about if I do Royal Statistical Society exams?Are they enough to have the math background I need?Which do I need to be able to complete to have the equivalent math background:Ordinary CertificateHigher CertificateGraduate DiplomaOr will none of them give me enough mathematical background t...

Hi,I just want to round my knowledge out - it appears that financially it is best to remain in asset management.If I want simply to be capable of doing the Oxford test, what kind of preparation do I need?I find even those impossible to do (I was able to do half of them).Thanks.

<t>Hi,I believe the best course of action would be a formal sit-down exam - sort of like FRM where you can buy a reviewer then take an exam to force you to know the stuff.Does this make sense?Is there such an exam that is the equivalent of knowing enough math to survive an MSc Quant Finance and corr...