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I could start you on a simple way to price a vertical. Do you know what a BOX is?

Forgot this: Most people focus on the first two because the third takes work and effort.

One way is to leg into the spread. This can be tough when the options series aren't liquid. Another way would be to use a scanner to search for the cheapest or most expensive spread available. The third is to learn how to price options so that you give up edge but your not getting ripped off...

They have entered into other lines of e-finance. I think their mortgage business is doing really well. As far as the broker side, I would think they would have to keep it to be a financial supermarket. It will become less important as time goes on. They need to be realistic about volumes...

you are better off shorting a stock rather than creating a synthetic short using options. Dividends and interest are calculated into the option already. If could leg into it for better prices, it is a possible scenario. The spread is typically too wide for non-MMs to do.

A proper answer to your question would be rather long. At the rate Metoox is going, he could take a couple of years. After driving for 15 hours the last 3 days, I am definitely not up to it. Also, I don't trade Vega off the floor. My experience with trading vega is only as a floor trader. A...

A bunch of French traders went on strike in 98 when the Matif went electronic.

FOC/LIT RATE SHEET Effective Date: 08/26/02 Interest Rate Change Old New Change Broker Dealer Rate 2.4375 2.5000 0.0625 Cross-Margin Broker Dealer 2.4375 2.5000 0.0625 FOC Short Stock Rate 1.5375 1.6000 0.0625 Equity Credit Rate (325 & 690) 1.1875 1.2500 0.0625...

It doesn't seem that option MM clearing firms and groups underneath them pursue novice traders who could put up their own capital. Despite Don Bright taking a beating on this board about how much prop firms train their new people, at least they do it and are aggressive about promoting such...

Mid-am is part of the CBOT. Everybody knew this was coming. My impression is that it was the brokers who were the biggest opponents of electronic trading, at least at the Merc. The equity index futures have migrated to electronic trading with the Mini nasdaq dwarfing the pit and the S&P...

Sorry, I kind of fucked that up. I went back and got the same right answer you did. My mind was focusing on a some different issues of the cost of carry at the time and didn't properly think through what I was saying. It was very incomplete and the formula was partly wrong. There are...

Reading through the stories makes me think that the Eurex is going to make a move in the U.S. The key point here is that their renegotiated agreement with CBOT frees them to trade dollar products.

From their letters page: http://www.adtrading.com/content/content.cfm?ID=601BF032-0F3E-4BA5-ADD8DD7F74DFFC56&SectionID=F8495671-65B8-42D7-A1E81C865B443B2D&IssueID=B7C074FF-D5E3-4D2A-B69E53F3FC812336

From another one of their websites, I found this: Link: http://www.appliederivatives.com/content/content.cfm?ID=52CC6F07-EAFA-4C73-9DBECAACCA964BC4&SectionID=B7756BE8-D801-4A0B-A369273F8F894CB3&IssueID=7A17DAEE-2D6A-4C26-BA8CB887DCF2BA10 Snippet: The cat who got the cream during IDW was...

This explains some of it. From: http://www.erivativesreview.com/content/content.cfm?ID=EFB09478-7872-4728-A19373A479093A60&SectionID=C1418597-80B8-420C-B1F0A47A6D9EC52C&IssueID=9B31C835-0275-44CE-86309FB19A7CF6D8 a/c/e Gets A Makeover The Chicago Board of Trade (CBOT) has restructured...

Doh! I thought it was just the OM software. Looking through the site again, I cleared up an issue which was debated on another thread. So, customers can't participate in the price improvement process.

The Eurex already has a presence for trading interest rate products here in the U.S. Also, it wouldn't surprise me if Euronext looks to make a similar move. How many exchanges can this country support?

I was specifically refering to what Maverick said about clearing firms using the ten-year bond. I know some people advocate using this in models. Whatever number works for you is your business. There are a lot of ways a trader can manage their cash on their own. I don't know the inner...

It's not the ten year note which is used. They use short term rates. Here are the ones from today. The long BD rate hovers around 2.5% Interest Rate Change Old New Change Broker Dealer Rate 2.5625 2.4375 -0.1250 Cross-Margin Broker Dealer 2.5625 2.4375 -0.1250 FOC Short...

When this thing launches, there will be six options exchanges. How many can be supported even in a good market?