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5 Greeks and Corresponding Sensitivities

 

Greek              Measures option price sensitivity to changes in:

Delta               Underlier Price

Gamma            Underlier Price

Vega                Underlier Volatility

Theta               Time to Expiration

Rho                   Interest Rate

 

 

What is interest rate risk?

Risk is either of increased funding cost for borrowers, or of reduced yields for investors. Short-term volatility and the unpredictability of interest rates led the banks and the financial exchanges to create ' an explosion' of financial instruments. Each of these instruments has a different set of characteristics for hedging interest rate risk on both loans and deposits, in different global currencies in both the short and long term.

 

 

Bermudan swaption

 Suppose a fixed-coupon callable bond was brought to the market by a company.

Interest Rate Derivatives

 An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a (usually notional) amount of »

Downloading and Installing Python

Python can be downloaded from http://python.org

For unix platforms download the .tgx file , extract the files and go to the main directory. Build Python by performing the following:

  1. ./configure
  2. make
  3.  make install

Python is usually installed in a standard location so you can find it rather easily. It has become quite common place for systems today to have multiple versions of Python installed. While it is easy to find the binary executable, you also have to deal with where the libraries are installed. 

iphone technology

 iPhone SDK uses the Objective-C language, which is an extension to the C language. Like any other mobile, iPhone too has a different programming platform; Windows Mobile (VB.NET/C#) and Android (Java) use object-oriented languages and are identical in syntax. However, Objective-C takes a totally different approach. Being different it creates a learning barrier especially for beginners dealing with Mac OS for the first time.

Objective-C as implemented by Apple is built entirely around Objects. It is used throughout the iPhone OS’s frameworks. Windows, views, buttons, sliders and controllers exchange information with each other in the form of events and actions in order to make the program run.

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