Do you guys think there will b bonus??? folks on the street are lil scare as thr could b a cut in salary

<t>@Devangel: how do you calculate the delta of a KO barrier option? I guess it will be lower than plain vanilla call. so being a seller I tend to make more money in barrier option related equity linked note. Secondly, how do you get the delta value as 0.7 in the example you have shown? Is it taken ...

can't open the .rar file. could u please send the .xls seperately...if u don't mindThanks in advance for your help.

TinMan: Can you help on this?

<t>Hi All,Dont know whether this is d right forum to ask this question but still giving a try. My question is on pricing a barrier option. Below is the specificationTenor: 36MKnock Up and Out Barrier Level: 170% of underlyingRebate : 60% if barrier is hitBarrier Observation : MonthlyIf Barrier is no...

Any comments please!!

Has anybody read this book? Is it reliable to bank on the valuation methods in practice? Please reply.

Has anybody read this book? Is it reliable to bank on the valuation methods in practice? Please reply.

<t>@DaveAngel - Lets say I would like to price an single barrier option with the following specs. Mat - 3 yr KO - 165, Rebate - 60 and it is a KO up call option you can assume r as 8% and div. yield as 1.5% If KO is not hit then participation : 110% fully principal protected@Ziggy: Thanks for your c...

<t>I have two different questions1. Which one is better for pricing an exotic structure (with 100% capital protection) -closed form solution? or montecarlo? or binomial model? 2. Is it possible in realty to replicate the pay-off of 100/140 call spread on an underlying whose option contract doesn't e...

anybody other comments on this please?

Hi daveangle,thnx for ur reply. so which method I should use while pricing such options? What do u think about MC simulation?

Hi All,I work with a BUY side firm and I would like to know whether it is reliable to use closed form solution in pricing exotic options like single barrier, digital etc. How reliable using Metron Reiner and Rubinstein methods of pricing standard barrier options?please replyregds

<t>Shayan,Delta hedging is not suitable when you are playing with your own or client's money as the transaction costs will eventually eat your profit. Many people take naked short postion in put / call simultaneously 15/14 days prior to expiry in order to eat the premium. So IMHO, delta hedging is m...

many thnx MCarreiraI've run thru the respective website, so have gained a fair bit of idea about the market.How is the opportunity to set up a JV with a small firm over there? Or how difficult and feasible are to open a shop over there, at sau paulo?