Post by: AltExploit

EconoFiction

Derivative Pricing Theory: Call, Put Options and “Black, Scholes’” Hedged Portfolio

10 Okt , 2018  

Fischer Black and Myron Scholes revolutionized the pricing theory of options by showing how to hedge continuously the exposure on the short position of an option. Consider the writer of a call option on a risky asset. S/he is exposed to the risk of unlimited liability if the asset price ...

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EconoFiction

The Banking Business

2 Okt , 2018  

Why is lending indispensable to banking? This not-so new question has garnered a lot of steam, especially in the wake of 2007-08 crisis. In India, however, this question has become quite a staple of CSOs purportedly carrying out research and analysis in what has, albeit wrongly, begun to be considered ...

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EconoFiction, Lexicon

Global Significance of Chinese Investments

4 Jul , 2018  

What are fitted values in statistics?

The values for an output variable that have been predicted by a model fitted to a set of data. a statistical is generally an equation, the graph of which includes or approximates a majority of data points in a given data set. Fitted values ...

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EconoFiction

Momentum of Accelerated Capital

14 Mai , 2018  

Distinct types of high frequency trading firms include independent proprietary firms, which use private funds and specific strategies which remain secretive, and may act as market makers generating automatic buy and sell orders continuously throughout the day. Broker-dealer proprietary desks are part of traditional broker-dealer firms but are not related ...

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EconoFiction

The Statistical Physics of Stock Markets

26 Feb , 2018  

The externalist view argues that we can make sense of, and profit from stock markets’ behavior, or at least few crucial properties of it, by crunching numbers and looking for patterns and regularities in certain sets of data. The notion of data, hence, is a key element in such an ...

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EconoFiction

Synthetic Structured Financial Instruments

19 Jan , 2018  

An option is common form of a derivative. It’s a contract, or a provision of a contract, that gives one party (the option holder) the right, but not the obligation to perform a specified transaction with another party (the option issuer or option writer) according to specified terms. Options can

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EconoFiction

Financial Entanglement and Complexity Theory. An Adumbration on Financial Crisis.

14 Jan , 2018  

The complex system approach in finance could be described through the concept of entanglement. The concept of entanglement bears the same features as a definition of a complex system given by a group of physicists working in a field of finance (Stanley et al,). As they defined it ...

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EconoFiction

Defaultable Bonds

11 Jan , 2018  

Defaultable bonds are bonds that have a positive possibility of default.  Most corporate bonds and some government bonds are defaultable.  When a bond defaults, its coupon and principal payments will be altered.  Most of the time, only a portion of the principal, and sometimes, also a portion of the coupon, ...

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EconoFiction

Hydropower Financing in India (Working Draft)

1 Dez , 2017  

India is the seventh largest hydroelectric power generator in the world with a capacity approximating 45 GW comprising 13.5% of its total power generational capacity.1 Add to that a capacity of 4.4 GW of smaller hydroelectric power units, the total installed and generational capacity is furthered by 1.3%. The ...

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EconoFiction

Speculations

25 Nov , 2017  

Any system that uses only single asset price (and possibly prices of multiple assets, but this case is not completely clear) as input. The price is actually secondary and typically fluctuates few percent a day in contrast with liquidity flow, that fluctuates in orders of magnitude. This also allows to ...

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EconoFiction

Ramping the Markets: Banking on Ponzi Finance

7 Nov , 2017  

When funded pension schemes were first put forward at the beginning of the 1970s as a private sector alternative to state earnings-related pensions, the merchant (investment) banks and stockbroking firms that promoted them did not anticipate how successful they would become in that, by the following decades, pension schemes and ...

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EconoFiction

Indecent Bazaars

30 Okt , 2017  

Peripheral markets may be defined as markets which generate only a small proportion of their financial inflows from local business and investors, but which attract the interest of ‘global’ investors. Emerging markets and markets for financial exotica such as financial derivatives are examples of such peripheral markets. Because emerging markets ...

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