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Hi David, I am not surprised that this has come up in the forum; because I had a similar thought .( not that is BT on schedule.. but am on schedule... because I am following as per the send outs of your lecture).. but then I sat back and looked at the entire course remaining .. and that...

Hi, I am bit confused bit the definations ofr DV01 and Duration. I understand that Duration is the percentage change or rate of change of security value with the rate (I guess Interest Rate); where DV01 is the change in the value of the security for a change of 1 basis pt of interest...

Hey David, Thanks for the explanation. I am comfortable to understand that Expiration the value of the option would be the Intrensic Value. This would for sure explain things for the European Option. But, if we look at the example for American Option, then there are cases when we can...

Hi David, With reference to Chapter 11 of John C Hull, We are calculating the price of the option at the nodes (The last ones) as Stock Price - Strike Price; which actually is the Intrensic Value of the Option. The Value of the option is Intrensic Value + Time Value. What assumption of...

Thanks David, that was a good link. Are are links to the cases as in the core reads like that LTCM.. It would be good to go through the details.

H David, The Bussiness Snapshot 5.1 frm John Hull talks about Joseph Jett, the trader at Kidder Peadody's; to have been buying a stock from the Spot Market at time t and at the same time selling a future for the same stock which maturies at time (t + 3months). I understand the mistake done...

Thanks David, your explanation has made things clear for me. - Sudeep

Hi David, I was going through the 2008 Practice questions and came across the following question: The average return for a fund is +10% with variance of 25%. According to Chebysev's inequality, the probability that the return falls between 0% and +20% is AT LEAST what? With explanation...

Hi David, Referring to the uploaded excel sheet for the topic, i.e. 2-b-4. Here the values in the C and D columns are for the two random variable as specified by Jorion. The concluding line in the book says that the covariance of these variable should be equal to the correlation coefficient...

Hi David, I was going through sample questions and came across the following: Which of the following statements about a normal distribution is least accurate? A) The mean, median, and mode are equal. B) The mean and variance completely define a normal distribution. C) A normal...

HI guys, I am a bit confused with the calculations thats done in the Excel.... Could someone explain what calculations are being done in D, E and F 13 and not understood and I was also not able to understand what formulas are being used in the cells E18, and F21. By theory I have...

Hi David, First of all let me take the opportunity to let you know that the spread sheets and the videos you had uploaded had helped a lot to make the understanding better. I still had a few questions in my mind and would like to throw them to you • The SML line is defined to be the...

Hey David and Abraham, I would like to add a few words that I know on the topic. So for the exchange traded options, when ever these are floated into the market (which is some exchanges in the first working day); there correspond to many different strike price. Taking the example of NSE...

Hi David, I was going through one of the reference books which is Introduction to Quantitave Finance by Paul Wilmott. The formula given in this book seems to be different from the one on slide 33. I was looking at the formula on Page 207 (Second Edition). Could you please clarify if one of...