Do you have to do the whole Tequitized thing or can you just round??
not sure what Tequitized is?? But I know they alwasy round, so say it says -64.2535 YOu would Short/Sell 64 Options/Futures
I think you can ignore that MGG. If you go to the example on pg 116 and plug in the 120,037,739.30 into the T equitized part of the formula, multiply by the 1.03^1/2 and divide by the (1100 * 25), you get the 443 contracts they rounded to. It’s just a backwards calculation.
Yea I saw that, just wondering… Yeahhh Get to skip a step!
what the heck is Tequitized? oh boy do I need to review Derivatives…but FI is tomorrow and Tuesday.
I ignore that step.
T equitized bigwilly is the assumed amount of Tbills you are equitizing by rounding up or down the number of contracts you calculated you need to create your synthetic position.
OH I hate when they do that 