I’ll start… BlACK-Litterman model = BACK-out model
Payer-Swaption—>Put swaption. The Ps.
umm payer swaption is swaption to enter into pay fixed receive floating swap, isnt it? That is long interest rate receiver swaption is short interest rate
CSK, if you are long the interst rate, you are short the bond price…hence the put option
CSK…I had the same brain twist too. Put on bond is Call on interest.
Risk Tolerance = willingness AND ability to take risk. I’m sorry, but at this point this is all I can offer