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Asia Risk

A dynamic model for hard-to-borrow stocks

Traders with short positions in stocks that are subject to short-selling restrictions risk being 'bought in', in the sense that their positions may be closed out by the clearing firm at market prices. Marco Avellaneda and Mike Lipkin present a model for…

Pricing options on film revenue

This article illustrates two models for cumulative revenues from films, a time-changed gamma process and a compound Poisson process, and how these models can be used to price options. Don Chance, Eric Hillebrand and Jimmy Hilliard find that while both…

The fast track

Modern trading and risk technology systems are large and complex, but banks are becoming increasingly wary of running into implementation difficulties. As a result, technology vendors are packaging their systems so they are quicker and simpler to get up…

Blossoming interest

Foreign exchange derivatives trading levels suffered declines this year as hedge funds and other players partly stepped back from the market. But the asset class remains liquid and is attracting a new breed of market participants. Hardeep Dhillon reports

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