Your formula is meaningless, as it does not account for volatility. An option premium has to be higher when the volatility of the underlying price...
It all boils down to how you evaluate if an option is overpriced or not. That is: you first need a model. Price the option with your model,...
Quantitative Easing is not immediately inflationary. In fact more important than Fed "creating money supply" are the commercial banks. The...
The gain is proportional with the amount of cash you have. So, to answer your question, no. People with a lot of $$ gain the most, and those with...
In a very broad sense, when asset prices decline, money gains in value. Here is an example: Suppose A has $1000 in 10 x $100 shares and B has...
They aren't talking of the 2008 stock market crash because they're all too busy talking of the coming new and bigger 2009 stock market crash.:D
I tend to agree with that. This is almost similar with what happend with the CDS on subprime dept. The same banks that held subprime debt were...
As I said, there may be other reasons which may prevent a CB from actually debasing the currency (collateral effects, inflation, triggering a...
There are two types of CB intervention: a/ Those that try to support their own currencies (e.g. Bank of England in 1990's; Australian bank now)...
Whole market is down. Add to that the fact that people are nervous about earnings being released soon. How can it be other than down in this context.
The trillions pumped don't do shit right now because they're just being hoarded by banks, and not let to circulate and really feed the credit...
No depression. Hard shakup, cleaning of the mess. But no depression. It's clear that people are diveded in two groups. One group - the...
LOL A normal market is when the Dow Jones hovers a range of 1000 points in a few months, rather than a day :D
Yes Gringinho, people making these kinds of projections seem to ignore technological progress. As we develop sustainable green techs, the...
1/ Absolutely no. I have read somewhere that the earth has the potential to feed about 100 billion people, with current technology. 2/ Oil is...
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