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Crude doesn't pay divs, so you don't need to really worry too much about the more granular aspects of the cost-of-carry and, consequently, about the "American-ness" of these options. Just use a halfway sensible rate and you'll be fine... The point made earlier about the calculations is that...

Cost of carry in the context of options is exactly the same as the regular "cost of carry" concept.

Well, cost of carry is just a single number that represents the total cost (including opportunity cost) that you incur by having a position in something. It depends on what the underlying is, as well as your position and your funding arrangements. You can find a very decent explanation of the...

AFAIK, you do need a rate for the options calcs, regardless of the underlying futures having it "built in" or not (whether they actually do is a rather non-trivial point).

I imagine it's overkill to do smth like this for metals and energy futs, since they don't pay divs. So your basic European options calculator should be fine. For the index futs, if you need a general solution, you can probably use one of the American options methods, such as Barone-Adesi &...

How long are these phases that we're talking about here?

Them peoples sure sound like they iz eeeevil...

In theory and IIRC, isn't this determined by the OCC on a case-by-case basis? If you go to their website, you will find notices that they issue when these splits happen. Still there's a most common outcome, which is what the previous poster suggested. Specifically, in a N for 1 split, for...

TT is right. The author of the article quoted is being incredibly cavalier with their logic. In fact, that's a compliment as there's marvellously little logic present in the author's argument. In general, food prices across the globe have risen, as evidenced by the recent performance of the...

I would find such a scenario very hard to imagine... A CB's dept which buys assets is a sovereign wealth fund/reserve manager, which has no reason whatsoever to sell securities of any sort, whether it's gold, bonds or stocks. Unless, of course, they perceive that they're overweight a...

The BoJ has been buying stocks for a long time as part of the various (Q)QE programs. So that's nothing really new... The particular dept of the SNB which is buying stocks isn't really the CB, but rather the Swiss sovereign wealth fund. Of course, they're going to buy stocks. It's exactly...

Let me see... Maybe I mock ZH, because they lie, falsify evidence, plagiarise, spout obvious nonsense and stop at nothing to produce a dramatic headline that people will notice. Otherwise, ZH is just fine and dandy...

Facts must not stand in the way of a suitably shocking HeroZedge headline!

My apologies as well... Will stop.

Yes, you most definitely could... In fact, it was a relatively common setup in many places for a good long while.

What sort of research? You mean the economic history that examines the episodes that I have described?

1. What's the store of value in this case? 2. I understood that. What's the point? That silver is a store of value? Great, fantastic and otherwise wunderbar! I am not going to agree or disagree with you on this as this has nothing to do with the actual discussion. Point is that some people...

Really? Before 2000BC or thereabouts?

Full reserve banking is incompatible with free mkt capitalism. This has been demonstrated empirically, but it also is a matter of basic common sense. Trying to prevent fractional reserve banking through regulation is like trying to outlaw fornication. And the most ironic thing is that, even...

Cutting my hair? I am not really sure I understand your point here... What's the store of value in this context? Generally, speaking only for myself, I definitely expect to pay less for a haircut as time passes, since, sadly, there's less and less hair to be cut. As to t-shirts, jeans and...