Basis Risk and risk as delta, etc

This topic has 3 replies, 4 voices, and was last updated 13 years ago by abdullahxahoor.

Viewing 4 posts - 1 through 4 (of 4 total)

Author

Posts
November 26, 2012 at 10:26 pm #55795
koolliver
Member
- Topics: 9
- Replies: 17
What is the source of basis risk and how it can be minimised ??
How risks such as delta, vega, gamma. vega , rho, and theta can be manged ?
what is mva ?
November 27, 2012 at 12:23 am #108830
dazhong0703
Member
- Topics: 44
- Replies: 130
https://opentuition.com/groups/ask-the-tutor-acca-p4-exams/forum/topic/reasons-for-existence-of-basis-risk/
Just need to learn Delta hedge, the rest of “Greeks”, know concept will be enough.

Market Value Added
MVA is the value added to a business since it was formed, over and above the money invested in the company by shareholders and long term debt holders.
Example
BB Plc
2003 Ve = $25m
2004 Ve = $40m
Rights issue in 2004 = $5m
MVA = $40m – $25m – $5m = $10m
November 27, 2012 at 4:11 am #108831
ray3026
Member
- Topics: 4
- Replies: 29
you are required to calculate the delta hedge on how you do riskless portfolio…
May 16, 2013 at 7:49 am #125629
abdullahxahoor
Member
- Topics: 1
- Replies: 8
Hello.

I know the concept of basis risk but i am having a difficulty in using it. When determining the futures closing price, whether the basis points adds up in the futures price or deducted from the futures price? Kindly help me.
Author

Posts

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic.