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Quantitative Finance : Recent Questions and Answers (Page 9)

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

Is this how stock trading works?

I was told to move this question here from Money Stack Exchange, where some people have already provided some feedback. This is a very basic question about the Stock...

Asked on 10/27/2021

4 answer

How to connect Bloomberg's xbbp api to "Bloomberg Anywhere"

Due to COVID's remote work situation I found myself unable to access my physical terminal so I've had to use bloomberg anywhere (bba), the issue I'm having is that when...

Asked on 10/27/2021 by Gorlomi

1 answer

Question about using Ito's lemma in Gamma PnL

While deriving the delta hedge error if we hedge with implied vol, and the true vol is different, we say that the PnL of the call option is: $$dC=C_tdt+C_SdS+0.5C_{ss}<QV>dt...

Asked on 10/27/2021 by Arshdeep

1 answer

Operator splitting method on three assets black scholes equation

Currently I am studying finite difference method on derivatives with three (or more) underlyings and little bit confused on operator splitting method because two papers have different result. For the...

Asked on 10/27/2021 by whatamisaying

0 answer

VIX vs S&P: Drift in the hedging residual?

I am looking at the daily returns of the VIX index (dVIX ) and the daily returns of the S&P 500 (dS). I am running a linear regression (using 0...

Asked on 10/27/2021

1 answer

How to compute the historical VaR for a portfolio with long and short positions?

I would like to calculate historical Value at Risk for a portfolio that includes both long and short positions in forward contracts. The part that confuses me is that I...

Asked on 10/27/2021 by user1131338

2 answer

Building Financial Data Time Series Database from scratch

My company is starting a new initiative aimed at building a financial database from scratch. We would be using it in these ways:Time series analysis of: a company's financial data...

Asked on 10/27/2021 by mountainclimber11

10 answer

What is the industry standard pricing model for CME-traded Eurodollar future (American) options?

The CME-traded Eurodollar futures option is an American option. What is the industry standard pricing model for this product? Does the industry practice to treat CME-traded Eurodollar futures...

Asked on 10/27/2021 by Little

2 answer

Backtesting Market Making Strategy or Microstructure Strategy

How does one backtest either a market making strategy or microstructure-based strategy? I'd imagine that one way would be to record order book states over time and then insert the...

Asked on 10/27/2021 by Kch

3 answer

Hedging with different volatility (Ahmad and Wilmott paper)

In their paper they show that:- if you hedge with the realised volatility, the present value of the total p&l is the difference between the option value based on...

Asked on 10/27/2021 by user40929

2 answer

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