respond to the following questions:
- Use the data about the pricing of a put and a call on a selected stock and create “Profit Graphs.” Make sure you show the numbers on the graph and discuss when the buyers of calls or puts are in the money or out of the money.
- How VaR relates to Puts? Explain in detail
To get put and call pricing use: http://www.cboe.com/delayedquote/quote-table
- Create a portfolio of stocks
a. Use the securities you selected to find the VaR of your portfolio with $100,000,000 investment.
b. Find the stock stressing the portfolio through stress analysis and sensitivity analysis
c. Now change the distribution of this one stock by truncating the loss to eliminate the 5% VaR. You do this since you bought a put option that protects you against a loss of 5% for the one stock that is stressing the portfolio the most (based on the stress analysis you conducted).
i. When you do truncation, you will use: =RiskLaplace(0.025384,0.13748,RiskTruncateP(0.05,1),RiskName(“NVIDIA”),RiskCorrmat(RISKCorrelations,4)) (see example)
- Show the results of the portfolio’s VaR and stress analysis with the Put option from part 1
- How are the results with the put options changed? (use the truncation).
- Explain every step in your own words. Connect between the put you selected and the VaR. What did you save buying the put? Compare to the cost of the Put (You are doing cost/benefit analysis).
Note: All the above should include correlation
For this part, please use the link: http://www.palisade.com/GuidedTour/EN/RISK/
- Explain the structure of securitization and how it works, include the borrowers, originator, SPV, and investors. It is best to show the diagram and explain every part of it in your own words
- How CDSs contributed to building more securitizations? Use the AIG example to answer this question
- How can securitization become a problem for firms in regards to risk?
- What are Cat Bonds? Are they like securitization? Or like Reinsurance? Explain.
- Watch the “Big Short” and explain in your own words what Big Short action was conducted. How did they profit?
- Watch the “Warning” and explain what was the regulators’ mistake. Were there lessons to be learned for curtailing the 2008 financial crisis? What are they?
color as originally defined by Kimberle Crenshaw. The term was developed in an attempt to explain the multiple facets of oppression African-American women face. The term is now at the forefront of national conversations about racial justice, identity politics, and policing—and over the years has helped shape legal discussions. Not only was the black woman’s body public property available to white men for their pleasure, it was also regularly subjected to a highly politicized and patriarchal justice system whenever a victim attempted to seek redress. In an attempt to “reclaim” their bodies, coloured women utilized their voices as weapons, to create awareness of the injustice they had faced for decades. This was seen in the case of Fannie Lou Hamer, who spoke out and became an activist after she was sterilized without her consent and physically assaulted in a police station in June 1963. Respectability politics however, defined by Frances White as “attempts by marginalized groups to police their own members and show their social values as being continuous and compatible with mainstream values rather than challenging the mainstream for what they see as its failure to accept difference”; greatly determined the extent to which these women and the African American community as a whole could fight their cause. Notwithstanding, McGuire draws our attention to the fact that as time went on there was a change in attitude from a focus on the politics of respectability to the newfound thirst for equality and justice, regardless of personal history as was exemplified in Joan Little’s case. This development among others such as the organization and execution of the Bus Boycott of 1955/56 signalled the development of a sense of “somebodiness” and community among black people as they battled against the “thingification” of their humanity. Prior to this and still existing in our society to some extent today, Black people felt the need to constantly prove themselves to White people before they could be integrated into society. This has stemmed from a predominantly white ruling class domination of a racially diverse society coupled with their imposing of their worldviews as the accepted social norms. In actuality, these worldviews and ideologies are merely social constructs developed to serve the ruling class and control power relations. Significant economic, political and social change over the years coupled with the increasing number of vocal victims put an end to the ability of white men to sexually assault black women without consequence. Of equal importance to note in this book is the “mammyfication” of the black woman. Black women were often subjected to tend to white families at the expense of their own children who had to grow up without a mother. As aptly put by Cydney Renee, mammyfication is “the stripping away of the many layers of black women, and making it a commodity of which black women contribute to entirely, but in no way benefit from without pushback from society”. Some of these key ideas in McGuire’s work presented a new >GET ANSWER