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July 27th, 2001, 11:38 am
Forum: General Forum
Topic: Sure fire winner?
Replies: 8
Views: 191001

Sure fire winner?

<t>Just like in pricing derivatives it's not the actual probabilities that matter when the odds are set. Depending on how the betting goes, the odds will be set so that the House/Bookie cannot lose. For example, in a soccer match between England and Germany the Germans are more likely to win, but th...
July 26th, 2001, 5:48 am
Forum: Technical Forum
Topic: What is smile option?
Replies: 14
Views: 190877

What is smile option?

<t>Good! And welcome, person from Hong Kong!'Smile' refers to the variation of implied volatility with strike. In a world with perfectly constant vol (a common assumption in the old days) then, assuming option prices are correct, there'd be no smile.The big questions are how to interpret the smile, ...
July 25th, 2001, 10:44 am
Forum: Technical Forum
Topic: What is smile option?
Replies: 14
Views: 190877

What is smile option?

Sure, I'll tell you all about it...but you ought to make your forum profile public first!!! That goes for everyone out there...don't be shy! P
July 25th, 2001, 7:47 am
Forum: Technical Forum
Topic: Options on options shortcuts?
Replies: 8
Views: 191024

Options on options shortcuts?

What do you mean by a 'shortcut'?
July 25th, 2001, 7:46 am
Forum: Technical Forum
Topic: What is smile option?
Replies: 14
Views: 190877

What is smile option?

Well, I know what the smile is, just the variation of implied vol with strike price. But a smile option? Dunno. I could imagine it being lots of different things.P
July 25th, 2001, 7:00 am
Forum: General Forum
Topic: Quiz 1
Replies: 4
Views: 190679

Quiz 1

After the pirates quiz we've got another financial one...and this one will be far more subtle!
July 24th, 2001, 2:54 pm
Forum: General Forum
Topic: Quiz 1
Replies: 4
Views: 190679

Quiz 1

Aaron had a two line argument 'proving' which was which...Aaron, do you still have it?P
July 24th, 2001, 7:39 am
Forum: Technical Forum
Topic: Buying an option from a risky counterparty
Replies: 2
Views: 191111

Buying an option from a risky counterparty

<t>The question (and answer) throws up lots of interesting points...more questions and answers. Here are a few random thoughts.Choose your default model: It sounds like you are going for the 'reduced-form' model. But when does default happen? Only at expiry or can it happen before?If the BS eqn is V...
July 23rd, 2001, 1:49 pm
Forum: General Forum
Topic: You are back!
Replies: 8
Views: 194225

You are back!

Totally free (but for how long..?). All that we ask in return is that you logon to the site occasionally to see the exciting new articles and visit the forum for a chat
July 23rd, 2001, 1:25 pm
Forum: General Forum
Topic: You are back!
Replies: 8
Views: 194225

Alive & kicking!