Recent content by Vibnad1991

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    bond pricing with different spot rates/ discount rates

    Hi, I am an economics student at LSE and i have difficulty with the fundamental concept of bond pring usinf discounted cash flows. Here is a simple example illustrated in my textbook: two year bond 5% coupon 1000 par/face value 1year spot rate 8% 2 year spot rate % My interpretation of...
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    Option Replicating portfolio

    Hi, I am by no means an elite trader but i am trying to learn through my academic courses and indepedndent learning. Question current stock price 100 Every 3 month period it will increase by either 25% or fall by 20% 6 month call strike price of 90 Risk free 3 month IR 1% If the...
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