Re:Businesses are in for a mighty debt hangover
by pyuser583 on Wednesday May 17, 2023 @07:53AM
(#35974006)
Is there a book about this you recommend? Those basic concepts?
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Re:Businesses are in for a mighty debt hangover
by lordnacho on Wednesday May 17, 2023 @08:12AM
(#35974163)
Hull. Options, Futures, and Other Derivatives.
Also Wilmott. Can't remember the name but it will be obvious.
It's pretty much high school math, you establish what the cash flows are and the value of the thing flows from there. When it comes to optionality you probably haven't done stochastic calculus in high school, but you can follow along anyway. Both books will explain interesting things like how to price an option on an option, that kind of thing. Non-arbitrage is what holds the the whole thing together: if the price didn't follow {rules} then you could do {steps} to make free money.