Getting into the formula memorisation stage now. Could people post any good Mnemonic’s here that would be useful in the coming week. I like the one about Durbin Watson chasing serial killers…
for options parity I use Cock strike = pussy it helps (C X = P S), of course you have to discount the X (it points to a future value!) I need this because I forget which side is strike and which is underlying/spot/PV of future/forward. then, I just remember the “cock strike”. as far as mnemonics go, the stickier the better, and the weirder, the stickier…
Hmmm… I always just remember that logically a covered call must be worth the same as a protective put… 
photoguy Wrote: ------------------------------------------------------- > Hmmm… I always just remember that logically a > covered call must be worth the same as a > protective put… that means nothing to me. now you see why i need so much help. you and your knowledge of markets… 
Watson is chasing the serial killer, and the cure for it is Sherlock Holmes… or as they say in german: Hansen
c-p=s-k For put call parity… crap sick. And if you use x for strike, I’m sure you can think of something (after all you have been studying most of the time, right?)
this thread seriously needs more.
cmon guys! put call parity is clearly: S exy P amela is an X rated C ougar S + P = X/(1+r)t + C you just need to remember to PV the X
“FRC” Functional to Reporting = Current Rate Method. Stupid but it helps.
temporal is the “baby” method. the subsidiary is not very independent from the parent because it’s still a baby. so FC=PC. when converting, you also start with the balance sheet (B for baby, B for B/S) all current is the “all grown up” method. the subsidiary is relatively independent from the parent. so FC does not = PC. since the sub’s business is mostly done in a different currency than the parent, there is a chance the FX gain/loss might never be realized at the parent level. so FX gain/loss is in equity (CTA). since you start with B/S with temporal, all current is the opposite–when converting, start with I/S. not earth shattering, but it’s a good check to make sure you are keeping everything straight.
5 external forces Technology, Government, Social changes, Demographics, foreign influences. Thank god some day for me. Factors that make investors not want to invest abroad (Portfolio Mgt) Psychological barriers, legal restrictions, transaction costs, foreign currency risks, discriminatory taxation, political risks Please Let The Fuckers Die Peacefully Whatever their stupid but they work for me.
Ok, for the 4 VIE criteria, you might use this expression, which kinda rhymes with economy, sweet if you could pull a VIE off without consolidation, right? Eq Con 0 Bene “Ee Qwon Oh Benny” So those ^^ are the things (that are missing) that force a VIE consolidation Eq uity - thin equity layer Con trol - insufficient control by shareholders 0 - zero - the proximate losses faced by shareholders (ok, we know it’s non-zero, but gets the point across) Bene fits - shareholders do not receive residual benefits EQ-Con-0-Bene…hey, at least writing this up helped me
dynamutt Wrote: ------------------------------------------------------- > cmon guys! put call parity is clearly: > > S exy P amela is an X rated C ougar > > S + P = X/(1+r)t + C > > you just need to remember to PV the X Since she’s hot just remember to put the P in the V
Chuckrox8 Wrote: ------------------------------------------------------- > dynamutt Wrote: > -------------------------------------------------- > ----- > > cmon guys! put call parity is clearly: > > > > S exy P amela is an X rated C ougar > > > > S + P = X/(1+r)t + C > > > > you just need to remember to PV the X > > Since she’s hot just remember to put the P in the > V may be S + P = PV (X) + C S exy P amela is a P er V erted X rated C ougar
From allépourpêcher: 4 Cs of Credit: I think of the noise you make sneezing: achoo. Ignore the c (for credit) and the other letters are the 2nd letter of each word… Capacity Character Covenants Collateral
The 4 C’s CaChCoCo–beautiful. For any military history aficionados: LRRP “lurp” a long range-reconnaissance patrol, was known to encroach on enemy real estate… L: liquidity R: recapture R: risk (specific to any given deal) P: pure as they used to say, B all U can be (BU method) for P/B and RI methods: I think “rogue” and “roar” Both of these use ROE in the numerator, but one uses “g” and the other uses “r”. The denominator is, of course, the ubiquitous Dr. Caprate (r-g). So it’s ROE - g, as in “rogue”, and ROE - r, as in “roar”. Since Residual income starts with “r”, that’s how I remember which is which. Maybe the moniker P. B. Rogue is useful. This is just me, and it’s probably a mistake if you already know the RI formula cold to even look at this, but I prefer to use just one “B” in the equation, that is: RI = B * (1 + (ROE - r)/(r-g)) instead of RI = B + B*(ROE-r)/(r-g). To me it’s more intuitive, since the (1 + … ) is the form of a leverage type multiple.
P/E P for "P"ayout rate P/E = “Payout” / (r-g)
Please add to this. When I was in pilot training I made up a mnemonic for something or other, it was retarded. IP FRIP FRAP or something like that. Each letter stood for a component that was tied to the electrical system (INS, position lights, flaps, etc.). It was the lamest acronym ever. Ever. But I remember a buddy told me after the test that it saved him. It came as a bolt from the blue, the great IP FRIP FRAP (or whatever it was). So please put some thought into one of these and try to help your brothers and sisters. Do it for the poor unloved weird acronyms that would never exist without your intervention.
mmms I just use random letters like PIPABC-PBO CEIAA-Pension Expense FABE-Fair value of assets FUUU-IFRS liability NOCM-beg. NAV stuff like that
For FRA valuation (after initiation): IMP I hate FRAs…that’s just me. They are impish and fiendish in nature. To defeat the FRA summon the IMP algorithm. I: implied M: maturity P: PV (present value) so the algorithm is: determine today’s implied rate over the period find the delta between initiation price and implied at maturity discount to PV so for a 3x8 60 days after initiation: Implied = (today’s 8 - 60 rate) / (today’s 3 - 60 rate) (you wit me?) Maturity delta = ( implied - price ) * notional PV = maturity delta / (8 - 60 rate)