<t>Im trying to understand the business model of a particular hedge fund, Advance Alliance Investment Suite. They call themself an manager of investment managers, and it seems like they hire external managers from what i can read on their website. However, i dont quite understand how such a model wo...

crap. i thought you ment programming languague. Everybody thats into finance knows english.

A professor at my uni, did some math correlating the english national teams performances in all matches that matter (no friendlies) against FTSE. Results indicated quite strong postitive correlation. il try to find the paper.

Aside from a convienient way to back out a call option price in a binominal model, are these probabilities useful for anything at all?

<t>QuoteOriginally posted by: Traden4AlphaQuoteOriginally posted by: BullBearAlthough I can see that naked shorting can be damaging for companies with debt covenants that are tied to share price, most companies can weather a bear raid.Do any companies actually have this thought? I have seen equity\n...

I dont see any reason why this should be problematic, just one more constraint in the optimizing formula. Matlab and even excels solver can do this.

Make your own forward with debt?

I keep forgetting what euro\usd and usd\euro measure. Is Euro/USd = amount of Euros we need to pay to get 1 dollarAnd Usd/euro= amount of dollars needed to get 1 dollar?

<t>Im currently in an intership position(as a credit analyst) at the largest bank in scandinavia (which is where i live), and at the same time im taking my MSC in a top 3 rated school in scandinavia, (top 3 in scandinavia is however quite a bit worse than Mannheim). I got accepted for a 6months exch...

<t>QuoteOriginally posted by: listno arbitrage pricing is the notion that in the best guarantee no arbitrager with given numbers. If you fixed ir today it does not mean elimination of the risk. If the price will decline in the future your fixed no arbitrage ir bring us a loss. An example is mortgage...

<t>QuoteOriginally posted by: KackToodlesthe problem is that the size of the so-called "no-arb" spread depends on what you believe about FUTURE interest rates and not all long-dated interest rates can be exactly arbitraged due to timing and availability differences across countries; a person with a ...

<t>QuoteOriginally posted by: KackToodlesQuoteOriginally posted by: Ostepop Isn't this broken logic? Currency forwards\futures are priced strictly by covered interest rate arbitrage. Any backwardation etc, is only a result of current interest rate differentials? the problem is that your arbitrage re...

<t>QuoteOriginally posted by: AlanBQuoteOriginally posted by: OstepopSo this week, he managed to say the following:In regards to Currency derivatives:The forward price reflects the marked view of the future. Thus if the forward is in backwardation, the marked expects the current spot rate to fall.Is...

<t>So this week, he managed to say the following:In regards to Currency derivatives:The forward price reflects the marked view of the future. Thus if the forward is in backwardation, the marked expects the current spot rate to fall.Isn't this broken logic? Currency forwards\futures are priced strict...

<t>He could not understand why S(up)>rf > S(down) in the binominal model.I told him that otherwise, there would be arbitrage. and explained the obvious (both higher than rf, and stock pays for certain more than risk free rate of return, and i nthe opposite case, rf pays for certain more than stock.)...