Elan describes it as:
PV_ - PV+ - (2x PVo) / Change Y ^2 x PVo
Schweser describes the top line as
PV_ + PV+
So essentially schweser says you add the first two components, Elan says subtract. Is this an error on Elan’s part?
Elan describes it as:
PV_ - PV+ - (2x PVo) / Change Y ^2 x PVo
Schweser describes the top line as
PV_ + PV+
So essentially schweser says you add the first two components, Elan says subtract. Is this an error on Elan’s part?
From the CFA readings (v5- pg 501)- it’s [(V_) + (V+) -2(V0)]/[2(V0)(Dvsquared)]
Schweser has it correct.
I wrote an article on convexity that may be of some help here: http://financialexamhelp123.com/convexity/.