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  1. WhizzKidd

    Credit Questions

    Hi @David Harper CFA FRM, Do you have any insight on the below: WWR: If you are short a banks stock, and the bank value falls, so the value of your short trade goes up..Is this WWR? Say you long a call from an airline on oil, if oil goes up the value of the call goes up, and the airline which...
  2. WhizzKidd

    VaR questions

    Hi @David Harper CFA FRM, Thanks for answering the prev. question! I know you may be quite busy now, but I have some last few questions where I hope that you could please :confused: find some time to look at them, all VaR related: #Say, an index halted trading for 5 weeks, during that 5...
  3. WhizzKidd

    Credit Exposure Profiles

    Hi @David Harper CFA FRM I am trying to understand the credit exposure profiles in Ch13. For an IRS (Pay Fix, Recieve Float): The scenario in the notes where i_fix>i_flt initially, then reverses afterward, as the yield curve slopes upwards. Why initially when I am paying net on the swap the...
  4. WhizzKidd

    Funded vs Un-Funded

    Hi @David Harper CFA FRM, What is the concept of "funding cost" being mentioned in the chapter? What is the difference between a funded derivative vs. an un-funded one? And what is the funding/liquidity risk related to? I understand it as the ability to obtain a loan and the i-rate one has to...
  5. WhizzKidd

    Forward and Futures Market (lease rate)

    Hi David, With regard to gold futures, why do they have an increasing futures curve (contango)? When we have a positive lease rate, because would the +delta not decrease the forward price... So*exp((r-delta)T)? I am struggling to understand why the curve is upward sloping (I am a bit confused...