Covered interest arbitrage is an arbitrage trading strategy whereby an investor capitalizes on the interest rate differential between two countries by using a forward contract to cover (eliminate exposure to) exchange rate risk. Using forward contracts enables arbitrageurs such as individual investors or banks to make use of the forward premium (or discount) to earn a riskless profit from discrepancies between two countries' interest rates. The opportunity to earn riskless profits arises from the reality that the interest rate parity condition does not constantly hold. When spot and forward exchange rate markets are not in a state of equilibrium, investors will no longer be indifferent among the available interest rates in two countries and will invest in whichever currency offers a higher rate of return. Economists have discovered various factors which affect the occurrence of deviations from covered interest rate parity and the fleeting nature of covered interest arbitrage opportunities, such as differing characteristics of assets, varying frequencies of time series data, and the transaction costs associated with arbitrage trading strategies. (Wikipedia).
What is a Covered Call? - Options Trading
What is a Covered Call? - Options Trading Strategies These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twit
From playlist Class 2: An Introduction to Options
Volatility Arbitrage - How does it work? - Options Trading Lessons
What is Volatility Arbitrage? Volatility arbitrage is a trading strategy that attempts to profit from the difference between the forecasted price-volatility of an asset, like a stock, and the implied volatility of options on that asset. These classes are all based on the book Trading and
From playlist Class 4 The Greeks & Dynamic Hedging
What are Dividend Swaps, commodity swaps, equity swaps?
In todays video we will learn about Dividend Swaps, Commodity Swaps and Equity Swaps. These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patri
From playlist Swaps
Merger Arbitrage Hedge Fund Strategy ― How Does it Work?
#mergerarbitrage #hedgefunds #trading #riskarbitrage Merger Arbitrage is an absolute return hedge fund trading strategy that aims to profit from predictable moves in stock prices that occur once a merger deal has been announced. 2020 has not been a great period for this strategy as a numbe
From playlist Corporate Finance
Monique Jeanblanc: Arbitrages in a progressive enlargement of filtration
Find this video and other talks given by worldwide mathematicians on CIRM's Audiovisual Mathematics Library: http://library.cirm-math.fr. And discover all its functionalities: - Chapter markers and keywords to watch the parts of your choice in the video - Videos enriched with abstracts, b
From playlist Probability and Statistics
How do you risk manage portfolios that contain financial derivatives?
These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle Derivatives are specific types
From playlist Risk Management
Accounting Lecture 13 - Bond Issuances, Amortization of Discounts and Premiums
From the free study guides and course manuals at www.my-accounting-tutor.com. Illustration of the amortization of bond discounts and premiums using the straight-line method. Entries for issuance, interest expense, and maturity of bond issues.
From playlist Accounting Lectures
Mathematical Models of Financial Derivatives: Oxford Mathematics 3rd Year Student Lecture
Our latest student lecture features the first lecture in the third year course on Mathematical Models of Financial Derivatives from Sam Cohen where students learn that the aim of any financial model is not to make money but to avoid being exploited. We are making these lectures available
From playlist Oxford Mathematics 3rd Year Student Lectures
What is Put Call Parity? How does it work?
Today we will learn about put call parity and how it works, These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https
From playlist Class 2: An Introduction to Options
Daniel Balint: Discounting invariant FTAP for large financial markets
Abstract: For large financial markets as introduced in Kramkov and Kabanov 94, there are several existing absence-of-arbitrage conditions in the literature. They all have in common that they depend in a crucial way on the discounting factor. We introduce a new concept, generalizing NAA1 (K
From playlist Probability and Statistics
Third SIAM Activity Group on FME Virtual Talk
Speaker: Bruno Dupire, Head of Quantitative Research, Bloomberg LP Title: The Geometry of Money and the Perils of Parameterization Abstract: Market participants use parametric forms to make sure prices are orderly aligned. It may prevent static arbitrages but could it lead to dynamic arb
From playlist SIAM Activity Group on FME Virtual Talk Series
Applied Portfolio Management - Class 7 - Hedge Fund Strategies - How Hedge Funds Invest
All slides are available on my Patreon page: https://www.patreon.com/PatrickBoyleOnFinance Applied Portfolio Management - How Hedge Funds Invest. In todays class we learn what a hedge fund is, we learn why people invest in them, and how hedge funds and other alternative investments might
From playlist Applied Portfolio Management
What are Structured Products? (Part 2) CPPI Constant Proportion Portfolio Insurance
In Part two of our series on Structured Products, let's learn about Constant Proportion Portfolio Insurance. These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfin
From playlist Exotic Options & Structured Products
Prof. Frank Riedel - Frank Knight, the Economics of Uncertainty, and 21st Century Finance
A workshop to commemorate the centenary of publication of Frank Knight’s "Risk, Uncertainty, and Profit" and John Maynard Keynes’ “A Treatise on Probability” This workshop is organised by the University of Oxford and supported by The Alan Turing Institute. For further details and regular
From playlist Uncertainty and Risk
Foundation of Risk Management -- Part 1 - Financial Risk Manager | Simplilearn
🔥Explore Our Free Courses With Completion Certificate by SkillUp: https://www.simplilearn.com/skillup-free-online-courses?utm_campaign=FoundationofRiskManagement&utm_medium=DescriptionFirstFold&utm_source=youtube This video talks about: 1.Foundation of Risk Management -- Part 1. 2.Arbitra
From playlist FRM Tutorial | Financial Risk Management Tutorial | Simplilearn
3 1 Model independent relations forwards, futures and swaps Part 1
BEM1105x Course Playlist - https://www.youtube.com/playlist?list=PL8_xPU5epJdfCxbRzxuchTfgOH1I2Ibht Produced in association with Caltech Academic Media Technologies. ©2020 California Institute of Technology
From playlist BEM1105x Course - Prof. Jakša Cvitanić
Introduction to Derivatives - Futures & Forwards - Revision Class1
A revision slideshow on Futures and Forwards. These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com
From playlist Revision Lectures
10. Debt Markets: Term Structure
Financial Markets (ECON 252) The markets for debt, both public and private far exceed the entire stock market in value and importance. The U.S. Treasury issues debt of various maturities through auctions, which are open only to authorized buyers. Corporations issue debt with investment
From playlist Financial Markets (2008) with Robert Shiller