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The implied vol of the call option and a put option with the same strike had better be the same, otherwise we've all got issues. So a straddle only has one vol. EDIT: pls let's not launch into an interminable discussion of put-call parity here.

Alan Howard has been around forever (not necessarily running his own fund), so he's probably one of the old ones. Mike Platt, yeah, maybe he's a newer one.

I don't think you can be a new trader and be in the mold of Bacon, etc...

A lot of managers do that, actually (i.e. run a hedge book that offsets the risk they don't like which their direct reports have gotten themselves into). Occasionally, risk managers also are given a mandate for that, but I believe that's reasonably rare.

I don't know where to find that... BBG probably comes closest, but I don't think it's been available recently.

And, looky here, isn't this an amazing coincidence? An article in the WSJ on the subject (you can probably access the full text through Google)... http://online.wsj.com/article/SB10001424052970203824904577213261643737968.html

Trust me, you're not alone in this... In hindsight, so many things look obvious to me now, it's beyond funny. But connecting the dots, while you're in the middle of it, is really very very difficult.

- The Canadian situation was all about a bunch of ABCP conduits. If memory serves, it ended pretty much the same way most other SIV/conduit debacles eventually ended. Specifically, the sponsoring banks ended up taking parts of them onto their balance sheets. Other parts were restructured and...

Huh? How many times now have I provided specific and detailed arguments for why the MMF industry, the way it exists now, should contract? I have offered analysis and reasoning. How many more times should I do it? What precisely is the flaw in the reasoning that I have given which makes it...

OKI, fine, but I am not really sure what this has to do with the point I am making. I am suggesting that the MMF industry, the way it is currently designed, deserves to contract severely. I really don't get why the SEC proposal, the main point of which is to force MMFs to mark-to-market, is so...

Huh? So I guess mark-to-market doesn't matter then? How can I get a deal like that for my trades? Moreover, what about the fact that the MMFs had to be bailed out by their parent co's? At any rate, I can't make you see what you don't want to see. I was directly involved in the money mkts...

I remember seeing this prediction on this site and elsewhere. Just thought I'll mention here what actually happened: http://www.telegraph.co.uk/news/8765760/Chinese-tourist-boom-swells-visitor-numbers-to-UK.html http://www.telegraph.co.uk/news/9071757/Royal-wedding-leads-to-tourism-boom.html

Yes, agreed, but that's a different issue. The system definitely has fragilities of all sorts and the CP mkt is certainly one of the biggest, given how important it is for everything that happens in the real economy (hence the Fed stepped into that mkt in 2008 with CPFF). However, let's not...

With all due respect, Ed, you're completely missing the point. The discussion has nothing to do with low rates, even though, obviously, it's not making the life of a MMF manager any easier. However, rates will one day rise, but the nature of the industry will not change unless something is done.

Hahaha, 3% haircut? There were only two reasons MMFs haircuts across the industry weren't a LOT higher. One is the ability to avoid mark-to-market. Two is the fact that some of these funds have parent companies, which were forced to inject liqudity into the funds to avoid a massive blow to...

It's bwol, you see... He brings out my inner droll.

These are all easily done in Excel. See here, for example: http://www.espenhaug.com/black_scholes.html

Firstly, I would recommend you get this book: http://www.amazon.com/Complete-Guide-Option-Pricing-Formulas/dp/0071389970 Secondly, if you scroll down in the very same Wikipedia article, you will see the actual formula you're looking for (rather than the definition as a partial derivative...

Look on the bright side, atticus, and think of it this way... You could be stuck with a total idiot, who endlessly promotes himself and declares to the whole wide world that he's God's gift to all mankind. Instead, you're stuck with bwol. Oh, wait...

No worries, mate... Have a good w/e!