Recent content by Ashwin FRM

Hi David, I recently found this site. I passed FRM in 2009. I began participating here. I noticed that in order to reply sometimes I had to code it in excel or derive the equations, read the background material etc, took a lot of time and then, also, I did not have access to certain parts of the...

@Hend, That is awesome. Thanks.

What are the advantages of pursuing CFA? What type of jobs become open to you? How is this compared to MBA?

Hend, a good question, seemed very ordinary though. ShaktiRathore elucidated with details. The reason that the MP (monetary policy) and FP(Fiscal Policies ) are under different controls, I think, is because of purely technical issues. Federal Reserve, holder of MP, was created in 1913 in...

in 2006, US tax revenues were $2.6 Trillion USD. so $40B/Month, as in QE3, is small relative to that, and it is targeting MBS, to lower mortgage rates and stabilize stock market. It is surely inflationary like QE1 and QE2, and is clearly prevalent in anything we buy ( food and gas in...

covered in Cope

It seems, d2 changes sign from positive to negative as relationship of r changes from less than to more than sigma^2/2. so if the vol increases or r decreases the d2 will shift toward negative. Here, it does not change the answer any. Thanks.

as T->infinity, exp(-rT) ->0 d1, d2 -> +infinity N(d1)->1 and N(d2)->1 c=S N(d1) -K N(d2) exp(-rT) ->S <== so call will become equal to asset price. N(-d1)->0 and N(-d2) -> 0 ; p=K exp(-rT) N(-d2) - S N(-d1) -> 0 <=== so the put will tend to be zero put call parity holds, as c - p= S - K...