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My best impression of an IB sales coverage: “You’re a good client and a solid friend! Let’s go to Bobby Vance next week?”

Both countries have really good beer :)

I never mentioned MS :) but no, we did not overlap but I have met him socially a few times

LOL.

I think he left in the late 80s/early 90s when he founded Oak Ridge, no?

LOL. Having being on the receiving end of the said put, yeah, that's pretty much perfectly true. But this is a homework question, so we are playing by the rules here :)

Right, that's what I thought at the first glance. If this is a homework problem indeed and the kid submits "there is not arb", I wonder what would the professor say? :)

The given strike makes the put smack ATMF, so volatility is important

Hmm, I agree. My initial take (without calculating) was that there is a negative forward vol, but the 1y call is ITM by a fair bit (50 points). Back of the envelope on my cell phone calculator: call(1y) = F * 0.4*vol*sqrt(1) + delta * (F - K) = 0.4 * 1050 * vol(1y) + 0.5 * (1050 - 1000) vol(1y)...

Where is your bid?

Actually, from my interactions on this forum, there are plenty of diligent and intelligent people. What these people lack is knowledge and experience. Given the right ideas they would be able to make money (after being spanked by the market a few times).

You know that’s not true. In most cases, a retail trader should and can do better than an institutional market participant. There are multiple reasons for it - lower liquidity needs, broader product universes, lack of negative selection imposed by irrational risk parameters etc. Additionally...

I was going to, but I am pretty certain this is a problem from OPs homework assignment, despite his assurances to the contrary.

Do you think that's true in our case? :banghead:

I think this is something that deserves a separate thread (or even a whole book).

Aussie and NZ. Every fucker goes to where I want to be :(

Not really. Most of these people are moving back to the city, where taxes are even higher. It’s a combination of people want to be in the happening places as they grow older, funds and banks moving back to Manhattan etc. I doubt anyone working in finance is really trying to time the real estate...

While playing ping pong and singing a song

You’re using a bong and wearing a thong

It’s not that hard to build something that beats commercial algos but a fair bit of work to build a good one. A good one would be product-specific, have varying degrees of agression, have a liquidity profile customization etc. PS. I am surprised someone like IB does not offer a semi-lousy one...