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Risk magazine

Israeli exchange upgrades contingency plans

The Tel Aviv Stock Exchange (Tase) has upgraded its contingency facilities for trading and clearing to ensure that in the event of an emergency, such as a terrorist attack on the main exchange, systems should continue to function as normal.

Calibrating Libor

With a rich spectrum of maturities and tenors to contend with, the toughest aspect of pricing interest rate options is calibrating models of forward rates to market data. Here, Damiano Brigo and Fabio Mercurio present a scheme for simultaneously…

A discrete question

How should discrete dividend options be modelled in an equity option pricing framework? As Volf Frishling warns, unthinking use of certain models to solve this problem can lead tosignificant mispricing in some situations

Pricing default baskets

Nicholas Dunbar, Risk’s technical editor, introduces the first in a new series of technical papers written by quants at Deutsche Bank.“Default correlation has been one of the hottest topics in credit derivatives over the past year. So it is a pleasure to…

Risk awards

The third annual Risk awards recognise excellence and innovation in the fast-changing risk management and over-the-counter derivatives businesses

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