Tag Info

Hot answers tagged


In the United States, the Federal Reserve is always late to adjust to rising inflation with an extreme outlier in the mid-1990s. Inflation always leads the flattening of the yield curve since the Fed raising interest rates which flattens the yield curve is usually in response to rising inflation. Poorly managed currencies or even the US in the 1970s will ...


I am not sure any of the other answers mentioned this but the main reason you should not use an option model to buy/sell the underlying (BS or other) is that the option models are more about market-making in options and hedging using the underlying rather than forecasting the underlying. The layman way to understand this is that: using an option model, you ...
