Hi David
Though I largely understand the distributions, I do not understand which distribution is applicable in a particular case. Can you please clarify? For instance, why use Pareto in left tail? Why not a Student's T?
Please, help.
Regards,
Rajiv
Hi David,
Though I have unserstood this product from the buyer's point of view, I am still unable to figure out the math from note issuer viewpoint. How does the issuer make money by paying higher coupon than what it receives from the underlying? Especially when it is required to pay extra...
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