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Unexpected Loss

Unexpected loss refers to the amount that a company could lose in addition to its average (anticipated) loss possibil...

Owais Siddiqui
23 Oct 2022
1 min read

Basel Accord

The Basel Accord is a set of agreements on banking regulations concerning capital risk, market risk, and operational ...

Owais Siddiqui
22 Oct 2022
1 min read

Sample Covariance

The sample covariance estimator uses the sample data for the expectation operator.The sample correlation is generated...

Owais Siddiqui
22 Oct 2022
1 min read

What is Seasonality?

Seasonality in a time series is a pattern that tends to repeat from year to year. Seasonality is mostly linked with s...

Owais Siddiqui
22 Oct 2022
1 min read

Vasicek Model for Interest Rate Modelling

The Vasicek model assumes a mean-reverting process for short-term interest rates. It produces a specific term structu...

Owais Siddiqui
22 Oct 2022
1 min read

Exotic Options

As the word represents, Exotic options are the options that are used rarely and are customised. They are opposite of ...

Owais Siddiqui
21 Oct 2022
1 min read

Net Stable Funding Ratio

The net stable funding ratio is a liquidity requirement that requires banks to have sufficient stable funding to cove...

Owais Siddiqui
21 Oct 2022
1 min read

Convexity Formula

Convexity relates to the interaction between a bond's price and its yield as it experiences changes in interest rates.

Owais Siddiqui
21 Oct 2022
1 min read

American Options

American options are the options that give the holder of the Option the right to retire even before the maturity.

Owais Siddiqui
21 Oct 2022
1 min read

Optimal Hedge Ratio

Optimal hedge ratio defines the futures market position that will simultaneously minimize the risk absorbed in the ma...

Owais Siddiqui
21 Oct 2022
1 min read