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Once again (and again), you guys know very well how to make real sense with your posts! I'd have to say that the posters on this options forum and their comments are of very high quality! So long guys! Very impressive indeed!

You guys have no idea for what is basis point volatility talking about! I'd better save my time here!

Once again, I am surprised by the quality feedback given by some highly experienced and knowledgeable options traders/ posters.

Do you think this kind of statements would provide/ enhance any rational/ logical way for better analyses/ arguments? I am jusy wondering! :) Talk again later with another thread, Ciao!

May I ask you one question: Can you actually Read properly, other than you know how to write whatever you like to post? :p When evaluating two supposedly equivalent options structures: Why do you Not to bring 'rho' into the discussion? What does Not rho have to do with anything (within...

Why using "Basis Point Volatility" is better than "Relative Rate Volatility"? Are they really useful? and How to use them properly?

This is wrong on many levels (ref atticus). http://www.elitetrader.com/vb/showthread.php?s=&postid=2532911#post2532911 +1 Below is one of the many underlying aspects: "If (commodity) stockpiles are large, demand can increase and drive uo prices with no visible volatility change. ...

+1 Below is one of the many underlying aspects: "If (commodity) stockpiles are large, demand can increase and drive uo prices with no visible volatility change. ... When supplies are considered adequate, volatility tends to subside, even when demand increase. ... This phenomenon is a...

Typo correction.

Because I can see you have exceptionally high IQ on your posts and questions! :p

Here are my observations: Synthetic long call/put options are not exactly equivalent of simple long call/put options. Appears to me that they have nothing specially to do with whether they are American or European options. I'm done with this thread now. Bye! :)

Here are some simple graphical illustrations provided by Cohen in "The Bible of Options Strategies", publsihed 2005 by FT Prentice Hall. A long call (page 7) mostly shows positive Rho values (indicating that "higher interest rates would increase the value of the calls and therefore help the...

This quote is from a book, published 2006 by John Wiley & Sons Ltd., and with The Securities and Investment Institute (UK).

If you have anything good to say, say it first before making judgment too early! :)

According to Weert: Q Since both the assumption c-p>S-Ke^-r(T-t) as well as c-p<S-Ke^-r(T-t) lead to arbitrage possibility, the put-call parity, c-p=S-Ke^-r(T-t), has to hold. ... It is possible to synthetically create a forward by buying a call option and selling a put option with the...

Just found: "parity and arbitrage" http://www.elitetrader.com/vb/showthread.php?s=&threadid=165975

The quote was copied from a book "Managing Currency Risk using Financial Derivatives", by John Stephens, An IIA Risk Management Series with The Institute of Internal Auditors UK and Ireland, Published 2001 by John Wiley & Sons Ltd, page 178. The same author has got two other titles published...

Quote:"The basic structure of a synthetic call option is one long put for evry one long furures contract. The futures contract underlying the put option is the same contract in which the long futures position is held. The combined risk/reward profile is Equal to the risk/reward profile of a...

You're not Wrong! That's why I always think Jack's methods Do work! :)

Do you believe that, sometimes on ET, even you try to start a thread or post/write something you just intentionally make that wrong, of course don't make it too obvious, you then would still find some supporters on both sides! Because we are traders (aka: speculators)! Hence we have the...