New answers tagged calculation
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Why is that we discount all the coupons and par amount of a bond at the same rate?
YTM is just trying to measure the return offered by a bond, taking into account the timings of cash flows. The discount rate that matches the quoted market price (net present value - NPV) of a bond is ...
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Am I doing the math for this covered call/long put strategy correctly? What risks do I run with this strategy?
Your math is not correct. In addition, you've made this much harder to visualize by including commissions.
Your long stock collar costs you $29.25 (-$35.10 + $10.02 - $4.17).
Below $26, your short ...
- 75.5k
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Am I doing the math for this covered call/long put strategy correctly? What risks do I run with this strategy?
One risk with this approach is the net purchase of volatility premium.
If there is substantial realized volatility and you are able to capture it, then this risk can provide additional relative ...
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