Please explain why interest rate has a positive correlation with call and negative correlation with put?.
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A German company that exports machinery is expecting to receive $10 million in three months. The firm converts all its foreign currency receipts into euros. The chief financial officer of the company wishes to lock in a minimum fixed rate ...
How does the American Put get affected in the presence of dividends? I mean to ask, why does the probability of early exercise of Put become less probable in the presence of dividends?
In options, X price /Strike price,, where does it come from? is it related to underlying or not? if yes, linearly or non linearly?
How transaction cost can effect put call parity ?
I’m currently in Derivative 11th class i.e first class of “Basic of Derivatives Pricing & Valuation” & I’m getting confused by the term”Value”, as per what I know I’ll try to put my questions in the form of points & ...
For an investor with a long position, the price of a futures contract will most likely be higher than the price on a forward contract on the same asset with the same expiration date if there is a: zero correlation between the futures ...