Could someone please write me up a nice summary to print. Please include all relevant data. Thanks MGG
While we’re at it, please include a summary of fixed-income.
Maybe I didn’t make myself clear, I want this as soon as possible
Mr.Good.Guy Wrote: ------------------------------------------------------- > Maybe I didn’t make myself clear, I want this as > soon as possible you forgot your signature after that quote: Mr.Good.guy Managing Director
No they like to use the “Yesterday is fine” “joke”
MGG_ are you talking about p 200-210 in Reading #39? I think it is basically a hedging strategy where you take a derivative position (a call) and a position in the underlying asset (the stock). In the short run - keeps your position neutral and you earn the risk free rate. So example (per the CFAI text) - the delta says 0.5, so you take a short position in two call options (= 200 shares) and a long position of 100 shares in the stock. If the shares drop by $1, you lose $100 but the options (which you are short) lose $100 in total (you gain since you are short). It only works in the short run and you have to keep adjusting… Hell if I can do the math on it… my eyes went cross reading the stuff…