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A bank has written 10,000 call option on one stock and 10,000 put option on another stock. For the first option the stock price is $50, the strike price is $51, the volatility is 28% per annum, and the time to maturity is nine months. For the second option the stock price is $20, the strike price is $19, the volatility is 25% per annum, and the time to maturity is one year. Neither stock pays a dividend, the risk-free rate is 6% per annum, and the correlation between stock price returns is 0.4. Calculate a 10-day 99% VaR for bank’s portfolio of 10,000 calls and 10,000 puts.

User Csteinmueller
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Compare items that are exempt and nonexempt from Chapter 7 fillings.

second car

pension

household appliances

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User Vahid Moradi
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