not-nick
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Call Option pricing query
0 votes

Where you are getting confused is that you are interpreting the variable t as it is declared in the Black-Scholes formula with what is traditionally called the time value. This is not correct. The ...

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Copying the S&P 400 by buying individual stocks
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5 votes

Nothing stops an individual or a fund manager from buying and holding all and only those shares which comprise a given index. Consider that many professionally managed funds are closet index trackers ...

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Total beginner starting to invest in oil
1 votes

In addition to those points already addressed in the comments: It is important to understand that there is a difference between what we might call the physical oil market and the paper oil market, ...

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Is it really 0.09% fee that SPY ETF is charging? Over the long term, doesn't SPY mirrors the S&P 500 index?
3 votes

ETF management fees are paid out of the funds assets, usually out of a combination of capital and accrued dividends. Using the comparison function on google Finance (click on the max tab above the ...

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Market Cap Calculation Based on Yahoo Financials
1 votes

The reporting of financial data in round thousands is applicable only on the tabbed page headed "Financials". The tabbed page headed "Statistics", where you are reading the total shares outstanding, ...

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Implications of uncovered interest rate parity condition
0 votes

It is not clear to me that you are thinking about this formula correctly. The uncovered interest rate parity formula is used to help judge if forward exchange rates fairly reflect interest rate ...

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Why do banks loan at APR ≤ 3%, rather than investing that principal in ETFs?
6 votes

The sort answer is because the banks create money through lending, and bank lending is fundamental to a prosperous economy. They are not allowed to create money to invest in equities or ETFs. ...

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Difference between CFTC COT report and COT legacy?
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1 votes

First note that the total and non-reportable numbers agree between the two linked reports. The difference arises when we look at how the two reports break down the market participants into categories....

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Does trading currency choice in a Gold ETC make a difference when base currency remains same?
3 votes

The SGBS (USD denominated) product is there to appeal to large institutional investors who keep large amounts on USD at hand and wish to trade gold. (Private, retail investors with USD in their ...

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"Holding the trade" in fixed income arbitrage
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3 votes

When the bust came in 2008, hedge funds were force to settle out liquid positions (such as treasury bonds) in order to raise cash in order to meet margin calls on their illiquid positions. These ...

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Why would one buy a bond with negative rate?
1 votes

Why would one buy a bond with a negative rate? Buying a bond with a negative redemption yield can be profitable in real terms in a period deflation. If deflation sends prices down by 4% and you ...

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How do U.S. stock exchanges specifically account for dividends and ex-dividend dates?
4 votes

I believe that the confusion here may be the result of mixing up two different types of prices - what we might call "official" prices and "market" prices. The exchanges issue official prices. They ...

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What happens to pending trades of delisted shares?
1 votes

If you had sold your shares on April 8th then you would have received the cash in your account 3 working days later. I think what you mean to say is that you placed an order to sell on April 8th and ...

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What is the difference between open access and open choice in health insurance plans in the United States?
1 votes

The basic difference concerns your set of choices. With an open choice policy you are free to choose any appropriate treatment provider, while with an open access policy your choice is restricted to ...

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Income from dividends and rental
5 votes

The gov.uk site includes a brief test to check if you need to send a self-assessment tax return. According to the information you have provided, you do need to send a return. This issue appears to ...

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What keeps exchanges in modern time from subsuming the role of brokers?
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2 votes

This has already happened. However, it is not exchanges subsuming brokers, it is brokers creating their own virtual exchanges. See, for example, Physical and Virtual Exchanges. One example is BATS ...

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What does Jim Simons signify by "stocks don’t double in a day"?
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7 votes

Simons is highlighting the problems faced when trying to establish an accurate database of historical prices for analysis. Before his team of physicists and mathematicians can work their magic with ...

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What is the stock warrant's expiration date here?
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2 votes

These warrants do not have a fixed expiration date, rather their expiration date is dependant upon the company completing an acquisition. Thirty days after the acquisition is complete the warrants ...

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What to do if the stock you brought are stopped trading
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2 votes

The Indian regulator (SEBI) has banned trading in 300 shell companies that it views as being "Shady", including VB Industries. According to Money Control (.com): all these shady companies have ...

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What is the difference between buying USDEUR compared to selling EURUSD?
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2 votes

The two are not equivalent in terms of net P/L. If you take a bullish view of the dollar against the euro, then there are reasons to buy USDEUR rather than sell EURUSD. For example, suppose you ...

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Which spot Treasury bond is used to calculate this high-yield spread?
2 votes

The spot yield curve is not a chart of a single treasury bond yield - e.g., 2year of 10 year. The spot yield curve is a graph of zero-coupon bond yields plotted against time. For example, to obtain ...

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When buying a call option, is the financial stability of the option writer relevant?
6 votes

In the case of regulated, exchange-traded options, the writer of an options contract is obliged to maintain a margin with their broker, and the broker is obliged to maintain a margin with the clearing ...

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How has the country exposure of the FTSE All-World High Dividend Yield Index and the FTSE All-World Index changed with time?
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3 votes

There is a fiddly way you can do it. For example, I obtained the April 2014 factsheet from the FTSE Analytics site using the following method. As you have already done, click on the "archive" link ...

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What are the tax implications if I do some work for a company for trade, rather than pay?
6 votes

Such activity is normally referred to as bartering income. From the IRS site - You must include in gross income in the year of receipt the fair market value of goods or services received from ...

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When to buy and sell bonds
2 votes

Why does the yield go up if the country is economically unstable? The yield will rise when instability increases because the risk of default increases. If the case of Greece, the instability of ...

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How do brokerage firms make money?
3 votes

Regarding "Interest on idle cash", brokerage firms must maintain a segregated account on the brokerage firm's books to make sure that the client's money and the firm's money is not intermingled, ...

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Does scarcity in sector talent imply higher valuations in that sector?
1 votes

In general terms, a lack of qualified, talented people will restrict a companies ability to grow since there simply will not be the necessary human resources available to successfully implement a high ...

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Volume increasing but bid/ask never changed
2 votes

Without further context it is hard to be specific, however I suspect that something along these lines is occurring : If the number of shares being offered at the current ask price is greater than ...

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Are index-tracking ETF popular in Japan?
2 votes

The Japanese stock market offers a wide selection of popular ETFs tracking the various indices and sub-indices of the Tokyo Stock Exchange. See this page from the Japan Exchange Group site for a ...

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S&P500 Price vs Real Price
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7 votes

As BrenBarn points out in his comment, the real values are inflation adjusted values using the consumer price index (CPI) included in the spreadsheet. The nominal value adjusted by the CPI gives the ...

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