I should admit that Peter's explanation is logically beautiful if we agree that "What a call option does in general is, it gives the holder the right to buy something with a variable value at a prescribed (strike) price at a prescribed time in the future." It's an interesting aspect overlooked...
I google a lot before I asked question here. BUT there are too many suspicious websites (our risk management professor always says so ). Just listing these links are not convincing. Confirmation from practitioner is more useful.
@Peter, remember Bob said in financial industry, we always use the...
Yes, payer/receiver swaptions are another names for them, which are very clear. The unclear thing about the so-called call swaption is whether it's call on IR or call on a bond(in FRM, it's defined as call on a bond). I am just curious which definition practitioners use.
The definition given in FRM handbook is:
Call swaption is "option to pay floating and receive fixed", while I also see the opposite definition("pay fixed") from a lot of places.
What's the definition in the industry? Conventionally, people treat it as a call on bond or a call on interest rate?
I think it depends on your previous background. If you are not coming from mathematics, or CS, or engineering, MFE is a little bit too difficult for you. Of course you can do it, by working harder than other young kids, who are in their good condition, physically and intellectually.
hi muting, I've been accepted by Baruch and Michigan. I like Baruch very much at this moment, but more information will be welcome. I have six-year working experience in risk management in enterprises(not in financial industry) after I obtained MS degree. Do you think placement service in Baruch...
hi Stefan, I've also been accepted by Baruch. I know you have been admitted by almost all the famous programs and you chose Baruch.What are you criteria when comparing these programs?Do you still think your choice is a definitely right one after these years? I like Baruch very much at this...
Video recording was submitted via Vimeo.com on 12/17/09
MS in economics, top university in China, GPA 3.72, GRE: 630,790,3.5, TOEFL: 97
6 yrs risk management w/e in enterprises
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