risk-free rate

Discussion in 'Options' started by stevenpaul, Oct 3, 2010.

  1. Well, IIRC, it did cause no end of consternation among the equity options types during '08, when LIBOR went crazy. So that "one day" seems to have come and gone with nobody the wiser.
     
    #11     Oct 4, 2010
  2. And there you go... The issues come out. The flip side of doing the practical thing is that there's arbitrage, in theory. Obviously, whether it's exploitable is another matter altogether.

    I might add that the institutional mkt is, at the moment, struggling with these very same issues (on a somewhat grander scale, of course), so this isn't just a retail problem.
     
    #12     Oct 4, 2010
  3. I had use a psuedonym (i.e. not my usual online handle) for this site out of shame :(

    What's funny is that, just this morning I was reading something from over there where you answered pretty much the same question.
     
    #13     Oct 4, 2010
  4. Yet here you are. :D


    I`ve been over there(diff nick) and it seems to be as full of high falutin jackasses as this place is trolls and wannabe`s.

    Choose your poison I guess....
     
    #14     Oct 4, 2010
  5. Ah, yes, I thought it might have been that...
    Guess that makes me a high falutin jackass troll wannabe, then?
     
    #15     Oct 4, 2010
  6. If I come here for entertainment/boredom does that make me a high faultin' jackass?
     
    #16     Oct 4, 2010
  7. Maybe. But dont say I said it, cause I didnt.
     
    #17     Oct 4, 2010
  8. No way. It just means your in good company.
     
    #18     Oct 4, 2010