Week in Financial Education (June 14, 2021)
Welcome to another WIFE. Last week we added a new practice question (PQ) set for the Insurance chapter (P1.FMP-2) and a new PQ set for the Risk Monitoring chapter (P2.IM-7). Trying to be realistic, for the mortality table, I pulled actual projected 2021 period life tables from the Social Security Administration at https://www.ssa.gov/. We received some truly thought-provoking questions last week. e.g. why would you use a stop-limit? Is put-call parity related to BSM? Thank you especially to lushukai for a lengthy, valuable response and to bollengc for identifying several errors and typos. Very much appreciated!
3. [P1.T2] Quantifying the error when there is omitted variable bias https://trtl.bz/3vmhVUn
4. [P1.T2] Is a seasonal differenced series MA(1)? https://trtl.bz/3gk7ZGq
5. [P1.T3] What’s the point of a stop-limit? https://trtl.bz/3pSrWrk
6. [P1.T3] Is put-call parity related to BSM? https://trtl.bz/3gicW2v
7. [P1.T4] Are ESOs dilutive? https://trtl.bz/3vfnTX7
8. [P1.T4] Thank you lushukai for the excellent response to math application of the Taylor Series (delta-gamma) https://trtl.bz/35gNXX7
10. [P2.T7] When did Basel II come into force in the EU? https://trtl.bz/3pMX23o
Curated Links (items you might like)
1. RISK, REGULATION, AND BANKING
- BCBS on prudential treatment of cryptoasset exposures https://www.bis.org/press/p210610.htm
- Assessing the Safety of Central Counterparties (Office of Financial Research) https://trtl.bz/3gu82hS Figure 1 is CCP default waterfall
- Where is IFRS 9 taking the cost of funding of banks? https://trtl.bz/3zhMRrU
- A Standard for Risk Data (ISDA) https://www.isda.org/2021/06/09/a-standard-for-risk-data/
- Assessing and addressing technology risk (Norman Marks) https://trtl.bz/3gusAqr “Understand the strategic plans and initiatives of the enterprise and then consider how technology is and will be used.”
- LJM Fund Managers Face CFTC, SEC Charges; Chief Risk Officer Settles (GARP) https://trtl.bz/3vjSt1F[/U]
2. DATA, TECH, CYBER, AND DEFI
- A Framework to Drive ESG Financial Discipline https://trtl.bz/2Sq2j4S “ESG isn’t non-financial information, but rather pre-financial information.”
4. INVESTING & FINANCE
- Should you be a short seller? https://www.alphaletter.co/p/should-you-be-a-short-seller
- Why Interest Rates Have to Stay Low For a Very Long Time (Ben Carlson) https://trtl.bz/3xkBoGa
- Still Using Book to Market for a Value Metric? https://trtl.bz/2SuYwmJ
- Reinventing the Financial System (Marc Rubinstein) https://trtl.bz/2TvW8Ms Links to: BOE’s New forms of digital money https://www.bankofengland.co.uk/paper/2021/new-forms-of-digital-money
- Negotiating Ransoms: When to Play and When to Fold https://trtl.bz/3gsEqSc interview with CEO of https://www.coveware.com/
- Visualizing Decentralization https://davidphelps.substack.com/p/visualizing-decentralization
Week in Financial Education (May 17, 2021)
Welcome to another Week in Financial Education! This week saw some great questions and fascinating insights. I will just highlight the instructive example of a...
Week in Financial Education (May 10, 2021)
Welcome to the latest week in financial education (WIFE)! As the May exams have started, we experienced another busy week. We are grateful for some...
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