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Quantitative Finance : Recent Questions and Answers (Page 14)

Find answers to your questions about Quantitative Finance or help others by answering their Quantitative Finance questions.

Improving control variate for variance reduction

I have tried stock price as control variate for my monte carlo simulation, and I am trying to reduce the variance of my estimated price for European Put option. And...

Asked on 12/31/2020 by Lin Lex

1 answer

Modelling VWAP Slippage with HFT data

I heard that VWAP slippage (relative difference between the VWAP and the initial mid-price, $varepsilon . frac{P_{VWAP}-P_{arrival}}{P_{arrival}}$ with $varepsilon = +1 or -1 $...

Asked on 12/31/2020

1 answer

Covariance, stochastic discount factor (SDF) and risk aversion

John Cochrane states, that if the covariance between the stochastic discount factor and the payoff is zero - then risk aversion should have no impact on the pricing. I do...

Asked on 12/29/2020 by Question Anxiety

1 answer

delta neutral option cost

I am trying to understand how an delta neutral profile is generated. I sell a call for strike of 50$ and the delat of this call is 0.5. I buy...

Asked on 12/28/2020 by roller

1 answer

Obtaining current list of companies in the FTSE 100 via an API

I'm making an app that displays the last close price of each ticker in the ftse 100 but for the life of me I can't seem to find an API...

Asked on 12/23/2020 by TheChubbyPanda

3 answer

Continuity of a portfolio with two options with respect to the strikes

Consider the covariance, evaluated at time $t$, between two call options written on two different but not independent underlyings $S_1$ and $S_2$ defined on the same (filtered)...

Asked on 12/15/2020 by user279687

0 answer

What's the disadvantage of using linear programming for portfolio optimization?

I am a MFE student and we have project on the Markowitz portfolio optimization problem. i am wondering how much impact there will be, if I use a simpler linear...

Asked on 12/15/2020 by felix

3 answer

Relationship between asset volatility and debt and equity value

So how I understand it, higher asset volatility implies a higher call option price. The Merton Model holds that the value of equity is a call option. This therefore implies...

Asked on 12/14/2020 by dadude27

1 answer

Converting US Treasury CMT to Discount Yields

I'd like to convert the US Treasury Constant Maturity series (par, semi-annual coupon, Actual/365 daycount convention) into Discount Factors (for appropriate comparison for certain money-market series, calculation of forward rates,...

Asked on 12/13/2020 by MikeRand

1 answer

How to calculate Greeks for leveraged Barrier options?

I am wondering how to calculate option Greeks for Down-and-out barrier Call options with leverage. The option characteristics are as follows. The buyer of the option pays a fraction of...

Asked on 12/12/2020 by twhale

0 answer

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