DERIVATIVES

An Option Pricing Model Based on Market Factors

Posted on February 21, 2023 By Harbourfront Technologies

In option pricing theory, the risk-neutral measure is a measure that allows for the valuation of financial instruments such as options. The risk-neutral measure is obtained by assuming that investors are indifferent to the risk and that the expected rate of return on all assets …

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RISK MANAGEMENT

How to Deal with Missing Financial Data

Posted on March 15, 2023 By Harbourfront Technologies

In the financial industry, data plays a critical role in enabling managers to make informed decisions and manage risk effectively. Financial data can come from a wide range of sources, including economic indicators, company financial statements, market data, customer transaction histories, and social media sentiment. …

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TRADING

How Reliable Is Out-of-Sample Testing?

Posted on March 24, 2023 By Harbourfront Technologies

Out-of-sample testing is a critical component of designing and evaluating trading systems. Trading systems are often developed and optimized using historical data, which can lead to overfitting – a situation where the system is excessively tuned to past data, resulting in poor performance on new, …

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Latest Post

Utility Expense: Definition, Accounting, Journal Entry, Example, Debit or Credit, Asset or Liability

Posted on March 27, 2023 By John

Companies need a base to operate in the business environment. While many companies have adopted a model to promote remote work, one element has remained the same. Despite the changes in modern business frameworks, companies still need electricity, water, and …

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