Hello Patrick, has the title "Trading and Pricing Financial Derrivtaves" changed to "Derrivatives for the Trading Floor"? Because the title you mentioned cannot be found. I bought both available titles, on derivatives and statistics, to brush up on statistics and finally understand derivatives. Which playlists or courses do I follow to help me get through the books?
@davidpake93402 жыл бұрын
cool channel Patrick
@andarvidavohits49625 жыл бұрын
Subscribed. Although I've not yet seen many of your videos, I am loving the titles and the content they promise. I'm positively delighted to find a channel focused on explaining derivatives. Although I don't mind it myself, I believe the excessive 'eye contact' present in your videos might weird some people out. If you care, create a more suitable visual focus for the viewer. Best of luck.
@PBoyle5 жыл бұрын
Thanks Andarvid. Hopefully you will find them useful.
@francojalen51873 жыл бұрын
you probably dont care but does someone know of a tool to log back into an Instagram account? I stupidly lost the account password. I love any assistance you can give me
@carmelojackson18813 жыл бұрын
@Franco Jalen instablaster :)
@francojalen51873 жыл бұрын
@Carmelo Jackson i really appreciate your reply. I found the site on google and im waiting for the hacking stuff now. Looks like it's gonna take quite some time so I will get back to you later when my account password hopefully is recovered.
@francojalen51873 жыл бұрын
@Carmelo Jackson It worked and I actually got access to my account again. I'm so happy:D Thanks so much, you really help me out !
@marcjosephferrer32622 жыл бұрын
how do i calculate e^(-6%*3/12) in excel? what is e exactly?
@PBoyle2 жыл бұрын
e is Euler's number a mathematical constant which is the base for natural logarithms. It is 2.71828. In Excel you can use the function =EXP()
@kaiweichu26473 жыл бұрын
Could you provide some insights on calculation for the Spread on floating leg when we are hedging a fixed coupon bond? For example, the current swap rate for 5Y is 0.50%, when I have a need to swap my bond with coupon of 4% to floating, how should I go about calculating the spread on my floating leg? Would it be just LiBor + 3.50%? Or is there another way to calculate that? Would be really helpful if you can provide some insights on that. Thanks!!
@londonwerewolves2 жыл бұрын
The what? What was that word? Did you say, "trutes"? What is a trute?
@kratosgodslayer61715 жыл бұрын
I have a query regarding pricing of a Swap, there is formula 1-dL/Sum of d. Where "d" is discounting factor for the LIBOR rates. I am not able to find what is dl, please help!!!!!
@PBoyle5 жыл бұрын
All you have to do to price a swap is present value the two streams of cash flow. The swap is worth the present value of what you are receiving less the present value of what you are paying.
@Andrea-uq2db2 жыл бұрын
how would this be if the libor was 3 month?
@primianoluc2 жыл бұрын
Hi Patrick, how would you address non-linearity in swaps assuming you locked into receiving fixed 5 BPs fixed over a 2 years tenor by hedging one swap with another? As the PV of those 5 BPs would then be exposed to fluctuations in the interest rate curve, what tools would be best to hedge these future cash flows?
@user-uj6lc2ql2p Жыл бұрын
If the conventions of the two swaps are the same, you will always be flat, that is the hedge. On swap A you rec 5bps, pay that on swap B. Vice versa with the floating legs. The non linearity only occurs considering when you trade out of mid. (Which is expected) I.e. the 2 year swap has a 4bp, wide spread, so it may cost you 9bps, to pay, where you can only rec 5bps in the market. The real way to hedge swaps to be perfectly flat is by looking at DVO1, you want the two swaps to have the same DV01, I.e. you could have two completely different positions (one is 100mio, 3year, one is 100mio, 2 year, if the DVO1 is the same, you will be perfectly hedged).
@user-uj6lc2ql2p Жыл бұрын
Unless I am mistaken, and you are saying you have already hedged and now stand to rec 5bps across the 2 positions (?)- if that is the case and the swap floating (indexed) rates are the same, you would just have a positive mark-to-market of the PV of that future 5bp amount. Unsure what you mean by ‘non linearity’
@user-uj6lc2ql2p Жыл бұрын
Ah, I see your question. Simple answer would be a ‘floater’, fixed income product linked to the floating rate. So you are due to receive 5bps (let’s say that is 5million dollars of the notional), as rates increase your MTM falls, you could spend some money on a hedge by ‘depositing’ the PV of that 5mio- say 4mio today, to be extreme, and as the PV rises or falls, the Floater will move in the opposite direction.
@jessicaifada3988 Жыл бұрын
How did you calculate the fixed bond CF to be 2.5m
@karlislocmelis5577 Жыл бұрын
The fixed bond's CFs happen semi-annually, thus if a bond has a 5% coupon, then each 6 month they will pay out 5%/2*100m. Hence 2.5m each 6 month.