AN UNBIASED VIEW OF PNL

In case you hedge each moment, You would not know the full pnl with the much larger SD moves but you do capture the full pnl in the smaller sized intraday moves. Conversely, if you only hedge at the time on a daily basis, you won't realize the complete pnl from your smaller sized intraday moves (like as part of your case in point) but you should in

Exactly what is the connection amongst default probabilities calculated using the credit history ranking and the cost of a CDS? 5Ie: If We all know the inventory will probably near near the opening price because it usually performs on a 1 vol, and its noon plus the stock is down -ten%, we recognize that it must go greater in the previous few hrs in