Matt Levine points out a basic fact of derivatives theory: a basket of options is worth more than an option on a basket. If five stocks…
A model of [ option ] prices that assumes: The existence of a risk-free asset paying some interest rate, for example, US Treasury bonds…
The greek letters used most commonly in finance are probably alpha and beta from the [ single-index model ]. However, the term 'greeks…
A portfolio containing a long (European) call and short (European) put [ option ] with the same strike price and expiry date is equivalent…