DERIVATIVES

No-arbitrage Model for Pricing CAT Bonds

Posted on November 16, 2024 By Harbourfront Technologies

Subscribe to newsletter Catastrophe bonds, or CAT bonds, are a type of risk-linked security designed to transfer the financial risk of natural disasters from insurers to investors. These bonds are typically issued by insurance or reinsurance companies to cover significant losses caused by events such …

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RISK MANAGEMENT

Hedging Vega Risks with Delta

Posted on November 20, 2024 By Harbourfront Technologies

Subscribe to newsletter Delta hedging is a risk management strategy used to neutralize the impact of price movements in the underlying asset of an option. It involves adjusting the position in the underlying asset to offset the sensitivity of the option’s value, measured by its …

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TRADING

Is the Put-Call Ratio a Reliable Indicator?

Posted on November 8, 2024 By Harbourfront Technologies

Subscribe to newsletter The put-call ratio (PCR) is a popular indicator used in financial markets to gauge investor sentiment. It is calculated by dividing the number of traded put options by the number of traded call options over a specific period. The put-call ratio is …

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Latest Post

Inventory Valuation: Definition, Methods, Meaning, Adjustment, Importance

Posted on November 18, 2024 By John

Subscribe to newsletter Companies must record an accurate value for inventory in their financial statements to represent an accurate financial picture. However, this task is not straightforward due to the challenges in evaluating inventory. Therefore, it is crucial to understand …

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