Trading volatility is particularly interesting these days: it is back and easy to buy using ETFs such as VXX or TVIX.
But these instruments are not following the VIX index directly. 98 more words
Tags » Term Structure
Till we began our discussion on bond markets, we had been working with the following pricing equation with a constant rate of interest, :
But clearly, in the real world we just don’t have one interest rate, but as a 802 more words