risk Archives - Sarbojeet Saha https://sarbosaha.com/tag/risk/ Independent consultant and entrepreneur Wed, 29 Jun 2022 22:41:21 +0000 en-US hourly 1 https://wordpress.org/?v=6.9 175164789 Learning from the Terra Meltdown https://sarbosaha.com/learning-from-the-terra-meltdown/ https://sarbosaha.com/learning-from-the-terra-meltdown/#respond Wed, 29 Jun 2022 22:41:21 +0000 https://sarbosaha.com/?p=890 The last 6 weeks have certainly been a painful experience for cryptocurrency enthusiasts and investors, with Bitcoin crashing a full 35% since May 15th (and, at the time of writing, a staggering 71% from its all-time high from mid-November 2021). Given Bitcoin’s dominance in the crypto market, wherein it accounts for roughly 42% of the […]

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]]> https://sarbosaha.com/learning-from-the-terra-meltdown/feed/ 0 890 Understanding the SABR Model for Option Pricing https://sarbosaha.com/understanding-the-sabr-model-for-option-pricing/ https://sarbosaha.com/understanding-the-sabr-model-for-option-pricing/#respond Fri, 10 Jun 2022 16:36:54 +0000 https://sarbosaha.com/?p=879 When pricing options, one must always be careful to model the implied volatility of the instrument appropriately. This is not actually particularly easy, because implied volatility is, by definition, not observable in the market. It is essentially a value that, when you plug it into your pricing model, returns back the actual market value of […]

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]]> https://sarbosaha.com/understanding-the-sabr-model-for-option-pricing/feed/ 0 879 Why Financialisation Damages Markets and Destroys Value https://sarbosaha.com/why-financialisation-damages-markets-and-destroys-value/ https://sarbosaha.com/why-financialisation-damages-markets-and-destroys-value/#respond Thu, 21 Jan 2021 14:42:45 +0000 https://sarbosaha.com/?p=789 When future economic (and regular) historians will look back over the past century of financial crashes and panics, one wonders what they will conclude. They may argue that we sowed the seeds of our own fiscal and financial destruction. If so, they will certainly be correct. We must ask ourselves why this keeps happening. Supposedly, […]

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]]> https://sarbosaha.com/why-financialisation-damages-markets-and-destroys-value/feed/ 0 789 The difference between risk and uncertainty https://sarbosaha.com/the-difference-between-risk-and-uncertainty/ https://sarbosaha.com/the-difference-between-risk-and-uncertainty/#respond Sat, 28 Nov 2020 05:41:53 +0000 https://sarbosaha.com/?p=673 Given the turbulence seen in financial markets and elsewhere these days, people are rightly confused and worried about the future. Forward planning under current circumstances is incredibly difficult. I have spoken to good friends who are used to planning months or even years ahead in their businesses. But these days, most of them cannot plan […]

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