What make bond price curve convex? Is it because of the compounding of interest rate?Thanks again

Hi,Will Vega increase or decrease when spot price (i.e. stock price) move close to barrier set in option?And how can we know how much market price in the possibility that Fed fund rate will increase in Fed fund Futures?Thank you very much in advance

thank you very much

thanks David....but wonder why China has to buy the government bonds whose currencies Yuan is pegged tosorry for simple question

Hi,Just read the news and wonder (1) why US treasury and UK Gilts prices fell when China had revalued its currency against the US dollar, and (2) why Eurozone bonds may benefit in the longer-term because the new basket of currencies contain the euro.Please advise. Thank you very muchBeginner

<t>Hi guys,Can you guys recommend me which book is good for the beginner of Financial Engineering. I already got Nefcti's book but want more books to study further.Also, can you advise me which topics in mathematics that I should focus on if I'm interested in Fin Engineering and which books should I...

<t>Hi,Have another question about Constant Maturity Swaps (CMS). I'm quite new with CMS. Please advise.1. I'm confused whether the floating leg is libor or current swar rate. I read several paper and they mention it differently.2. What is "a 5-year 6% floors on 10-year CMS"? Which rate should I comp...

<t>HI,Can anyone identify the differences between "2-year into 10-year swaption straddle" and "1-year into 1-year 6% payer swaption"?I know what these instruments do, but I don't know whether there are other differences between these two instruments, apart from cash flow structure, and long volatili...

<t>Hi,Thank you very much for your reply.I know that doing about CDS involves lots of mathematics, and so I try to do more on description of CDS, i.e. the development and the use of CDS in emerging markets, and properly do some pricing by using JT and DF model. Please advise me if this is possible. ...

<t>Hi Baydar,Thank you very very much for your reply. I agree with you that if I do about pricing CDS, I have to do many mathematics. But the thing is I'm worried that if I do only descriptive, it will not enough.....so I'm thinking about doing mainly on descriptive, and little about pricing. Do you...

<t>Hello,I'm doing my proposal about CDS for my Phd. To be honest, I have little knowledge about this topic, but I'm very interested in it. I really need your help. I read the paper 'An Empirical Stucy of Credit Default Swaps' by Skinner and Diaz and found that they use Duffie and Singleton (1999) a...