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[DerivativesAcademy @DerivativesAc]

Which product pays the largest coupon (all other things equivalent : maturity, strike, underlying, blablabla…)

[DerivativesAcademy @DerivativesAc]

- change of sign of gamma (from long to short as just described)
- gap risk (what if you can only sell the underlying much lowered than modelled and sell your vol hedge much higher than modelled?)

[DerivativesAcademy @DerivativesAc]

Which option is easier to hedge for a trader ?

[DerivativesAcademy @DerivativesAc]

- absolute value of delta spikes (high leverage)
- high gamma
- delta jump over the barrier (get rid of underlying as market goes down, at what price? liquidity?)

[DerivativesAcademy @DerivativesAc]

The geometric average is a lower bound of the arithmetic average as stated by the well-known Jensen inequality. As such, the arithmetic asian call will be more expensive (>=).

[DerivativesAcademy @DerivativesAc]

Which option is the most expensive given similar characteristics (maturity, asianing observations, underlying, ...)?

[DerivativesAcademy @DerivativesAc]

@BlackSwan_ptf Forward start options are not vanilla as most french traders should know by now 😅

[DerivativesAcademy @DerivativesAc]

𝘾𝙤𝙣𝙘𝙚𝙥𝙩 𝙎𝙚𝙧𝙞𝙚𝙨

Great discussion in our community about the 𝙩𝙚𝙧𝙢 𝙨𝙩𝙧𝙪𝙘𝙩𝙪𝙧𝙚 𝙤𝙛 𝙞𝙢𝙥𝙡𝙞𝙚𝙙 𝙫𝙤𝙡𝙖𝙩𝙞𝙡𝙞𝙩𝙞𝙚𝙨 and the concept of 𝙛𝙤𝙧𝙬𝙖𝙧𝙙 𝙞𝙢𝙥𝙡𝙞𝙚𝙙 𝙫𝙤𝙡𝙖𝙩𝙞𝙡𝙞𝙩𝙮!
#DerivativesAcademy #SharingKnowledge #Community #CareerBooster

[DerivativesAcademy @DerivativesAc]

Never made the link between Convertible Bonds and Reverse Convertible Notes? 🧐

Let us show you!

Ready to boost your expertise in cross-asset financial products? Look no further. 😎
#DerivativesAcademy #SharingKnowledge #ReverseConvertibles #ProductKnowledge

[DerivativesAcademy @DerivativesAc]

Register for this event here: https://t.co/86rIqxDa65

[DerivativesAcademy @DerivativesAc]

Our first Webinar!🤗

Join us for an exclusive interview featuring Kevin de Patoul, the brilliant Co-Founder of Keyrock. 💁‍♂️

Keyrock is an industry leader in the digital asset space providing market-making solutions! 🧠

8AM CST / 3PM CET

[DerivativesAcademy @DerivativesAc]

🚨If you like this type of content, join our community of young market finance enthusiasts at Derivatives Academy where we exchange insights and help each other understand key concepts for technical interviews.🚨

[DerivativesAcademy @DerivativesAc]

Cross-hedging is all about 𝑠𝘩𝑖𝘧𝑡𝘪𝑛𝘨 risk.

It involves using two different assets that exhibit positively correlated price movements, which are used to limit the risk involved with only holding one security.

[DerivativesAcademy @DerivativesAc]

𝑻𝒉𝒆 𝒉𝒆𝒅𝒈𝒆 𝒓𝒂𝒕𝒊𝒐 = 𝑩𝒆𝒕𝒂 (β). 𝑨 𝒄𝒓𝒐𝒔𝒔 𝒉𝒆𝒅𝒈𝒆 𝒓𝒂𝒕𝒊𝒐 𝒐𝒇 0 𝒊𝒎𝒑𝒍𝒊𝒆𝒔 𝒂𝒏 𝒖𝒏𝒉𝒆𝒅𝒈𝒆𝒅 𝒑𝒐𝒓𝒕𝒇𝒐𝒍𝒊𝒐, 𝒘𝒉𝒊𝒍𝒆 1 𝒔𝒖𝒈𝒈𝒆𝒔𝒕𝒔 𝒂 𝒇𝒖𝒍𝒍𝒚 𝒉𝒆𝒅𝒈𝒆𝒅 𝒑𝒐𝒓𝒕𝒇𝒐𝒍𝒊𝒐.

[DerivativesAcademy @DerivativesAc]

Young aspirant traders are often a bit surprised when we tell them that most of the trading that an option trader does is actually hedging 😅