thanks a lot for the explanations.

Hi, I want to know if it is possible to derive a skew surface for a product which doesn't have any options traded. if yes, how is it derived??thanks

thanks a lot for such a clear example.

thanks. can you please explain it with an example.

<t>I heard people say when there is no closed form analytical solution, one can use moment matching. I wanted to know how moment matching helps in finding solution to a modelling/pricing problem. Also , what is the maximum number of moments one should match.Any guidance/references would be greatly a...

thanks a lot for the reply.

<t>for an asian option based on n observations on an underlier, each observation would have forward value and a volatility for that underlier. The asian average of the forward values would be just an arthimetic average but what about volatility.How does one calculate volatility of asian option.thank...

commodity futures

<t>Can someone please explain me the difference between a future and a forward due to which there is no interest rate risk in futures. The reason given is that the future are marked to market daily(by exchange) while forwards are not. Can someone explain it in more detail??To me to simulate long fut...