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  1. R

    VAR, UL and EL

    Hi David, I have some confusion between the relationship between VAR, UL and EL. On one hand it is said that expected losses are built in the pricing of the product and VAR gives the UL and the EC required. On the other hand the formula say EC = VAR - EL Regards Rajaar
  2. R

    Call & Option Terminology

    Hi David, I am not very clear about the meaning of the terminology Short Call, Long call, Short Put, Long Put. My existing knowledge is limited to a call and a put option, and that buyer of a call option can purchase in future and buyer of a put option can sell in future. If you could...
  3. R

    Screencast 3.b Pg 11

    Dear David, There is a long call and short call in this example which cancel out returns in any situation. The only difference is in the premiums and the strike prices for the two call options. So what is meant when you say that these offer very high returns on initial investment...
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