Tag Archive: Short-rate model


You are a trader or investor ? This is the difficult question that most people do not able to answer,  they take a short blogterm view and when  position goes against them, they prefer to hold the stock as long-term bet.

Most successful investors tend to have clarity of thought and look only at the larger picture. They discount all day-to-day noises and concentrate only on the fundamentals. In the end, fundamentals always prevail over speed.

here is a small description that short-term is more of an emotional based trading where as the long-term provides value for your thoughts.
Short term= Emotions

Long term= Earnings Continue reading

Valuation Of Swaption: Back To School

imagesContinuing with our last post on Swaption, we are here to discuss the “Valuation of Swaption” today. A swaption can be settled in 2 ways as :-

  1. Physical settlement:- when an option is exercised to go ahead with the underlying Interest rate swap; and
  2. Cash Settlement:- When an option is exercised for the cash value and the market value of the underlying swap changes hands upon exercise.

Continue reading

%d bloggers like this: