Download PDF Introduction Building on our earlier analysis of Binary Options and Asian Options in the first two parts of this series, this third installment introduces Basket Options and Barrier Options, offering an in-depth look at their pricing, sensitivities, and practical implementation through Monte Carlo simulations and Python. Basket Options, Read more…
Download PDF Introduction to Graph Theory Graph theory is a field of mathematics that explores the properties of graphs, which are abstract representations of a set of objects where some pairs of the objects are connected. In an undirected graph , the set represents vertices (or nodes), and represents edges, Read more…
Download PDF USA All major indexes declined over the week with the Dow Jones Industrial Average being the best of the bad, retracting on previous week’s gains as uncertainty over incoming policies grew, leading to disparities in sector returns. The Russell 2000 fell by the most (-3.99%) following its rally Read more…
Download PDF Disclaimer: This article is intended solely for informational purposes. Bocconi Students Investment Club does not endorse any political candidate or party. Introduction Millions of Americans this week have cast their ballot for the presidential election, which has been undoubtedly one of, if not the most important event of Read more…
Download PDF Introduction As announced in our previous episode, the second article in our Backtesting series will discuss Cross Validation and introduce a new Backtesting strategy, first presented by Giuseppe Paleologo (2024). If you haven’t already, we recommend reading the first episode before proceeding with this article. Please note that Read more…
Download PDF Introduction In our previous exploration of sports betting, we examined basic market efficiency and evaluated whether straightforward strategies could uncover statistical arbitrage opportunities. Our findings showed that, while betting markets may appear exploitable at first glance, they remain highly efficient, leaving little room for profit under simplistic approaches. Read more…
Download PDF USA The S&P 500 Index advanced this week, driven by gains in the utilities and real estate sectors. Energy stocks, however, faced losses in tandem with a decline in oil prices, as concerns over potential Israeli strikes on Iran’s oil and gas infrastructure began to subside. In terms Read more…
Download PDF Introduction In fixed income trading, managing interest rate risk is a critical task for traders and portfolio managers. While traditional hedging tools that rely on duration or convexity are a good indication of how prices react to yield changes, they are based on limited assumptions with significant pitfalls Read more…
Download PDF USA While the week started with a selloff on Monday, giving back gains posted during the previous session’s post-jobs-report surge, the S&P 500, Dow Jones Industrial Average, and S&P MidCap 400 Index still reached record highs this week. The Dow Jones Industrial Average and S&P 500 gained 1% Read more…
Download PDF Introduction The aim of this article is to provide a comprehensive overview of equity swaps, focusing on their structure, mechanics and use cases for investors. Equity swaps evolved in the late 1980s and early 1990s, as a part of the broader development of over the counter (OTC) derivative Read more…
Download PDF Introduction The aim of this article is to provide a comprehensive overview of exchange-traded funds (ETFs) and to concentrate on their structure, functionality, and the factors leading to their increased use in the financial markets. Over three decades, ETFs have become a favored investment vehicle due to their Read more…
Download PDF USA In the midst of Hurricane Helene’s wake, shaky Middle Eastern tensions, and slightly higher than expected job unemployment benefit applications in the report on Thursday, markets responded in a cool manner. In the past 5 days, the S&P 500 was mildly in the red all the way Read more…
Download PDF Introduction In this article, we present the first episode of a series on backtesting. We want to provide the reader with an immersive analysis of this powerful tool and analyze all the processes that lead to its optimization and implementation. The series will consist of the following parts: Read more…
Download PDF USA The week started strong with both the S&P 500 and the NASDAQ continuing to grow, reaching all-time highs, after the FED delivered a 50bps rate cut last Wednesday. Amongst stocks, companies like Lockheed Martin (+40.11% YoY), Caterpillar (+35.64% YoY) and Lowe’s (+23.33% YoY) reached all-time highs. The Read more…
Download PDF Nike – BUY Target Price $183, 149% Upside Disclaimer: this article was written on the day of the CEO change announcement, September 19th when stock was trading at around 73 Euros, as reflected in our calculated target price and upside. Introduction Nike Inc., the company with the largest Read more…