Options
Nymex considers lawsuit against Optionable
The New York Mercantile Exchange (Nymex) may take legal action against Valhalla, NY-based brokerage firm Optionable, the exchange’s chief executive officer James Newsome announced this week.
Broker suffers after BMO commodity losses
US commodity derivatives broker Optionable saw its shares plummet again today after Bank of Montreal, its most important customer, said it would suspend their relationship.
Taking stock
Stock options are losing favour as a method of remuneration. Chicago-based PeoplesEnergy, for one, is to stop offering them altogether. And the onset of new USaccounting rules could well lead others to follow suit. By Paul Lyon
NAB to lose up to A$180 million on unauthorised FX options trades
National Australia Bank (NAB) is set to lose up to A$180 million ($140 million) from unauthorised foreign exchange option trades, despite efforts to improve its operational risk management in the past couple of years.
Profiting from gas prices
Natural Gas
Selling risk at a premium
Option strategies
US foreign exchange dealers revise operational risk standards
The Foreign Exchange Committee, a 20-dealer industry liaison group to the New York Federal Reserve Bank, has made new recommendations for the exercise of in-the-money foreign exchange options in a revision to its 1996 forex operational risk best…
Real option valuation and equity markets
Many non-financial assets can be viewed as ‘real options’ linked to some underlying variable such as a commodity price. Here, Thomas Dawson and Jennifer Considine show that the stock price of a well-known electricity generating company is significantly…
India could allow foreign currency-rupee options by April
The Reserve Bank of India (RBI) could allow banks to offer foreign currency-rupee options to corporate clients by April, according to a bank official.
Copula vulnerability
Counterparty credit risk
Not just a quick fix
Real options are an accepted risk management technique in the energy sector. Kevin Foster takes a look at how are they being used and what factors are affecting their development and implementation
Derivatives of increasing importance to ASX
The Australian Stock Exchange (ASX) has seen a 5% drop in net profit for the year to June 30, but revenues from derivatives trading, clearing and settlement rose 15% to $32.5 million, with 46,226 options contracts traded – 20% higher than the 38,519…
Bachelier’s ‘Theory of speculation’
100 years of risk management
Pricing liquidity into derivatives
Volatility
Uncertain volatility
Market risk
Regimes of volatility
Options markets