arbitrage-payoff
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P1.T3.21.9. Derivative payoffs
Learning objectives: Calculate and compare the payoffs from hedging strategies involving forward contracts and options. Calculate and compare the payoffs from speculative strategies involving futures and options. Describe arbitrageurs' strategy and calculate an arbitrage payoff. Describe some of...- Nicole Seaman
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- arbitrage-payoff arbitrageurs'-strategy derivative-payoff derivatives hedging-strategies payoffs speculative-strategies
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- Forum: FRM® Practice Questions
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P1.T3.707. Hedging versus speculation (Hull Chapter 1)
Learning objectives: Describe the over-the-counter market, distinguish it from trading on an exchange, and evaluate its advantages and disadvantages. Differentiate between options, forwards, and futures contracts. Identify and calculate option and forward contract payoffs. Calculate and compare...- Nicole Seaman
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- arbitrage-payoff forwards futures hedging hull over-the-counter-market payoffs speculation
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- Forum: FRM® Practice Questions