sketch of financial engineers

A Primer on Structured Financial Products

Download PDF Introduction Structured financial products are complex and customized financial instruments that combine traditional assets with derivatives. They are designed to meet the specific needs and preferences of investors who are not satisfied with the conventional financial products available in the market. Structured financial products can offer various benefits, Read more…

Half a Century of Black-Scholes: Option Pricing Models from Inception to Contemporary Innovations

Download PDF Introduction 50 years ago, the financial industry changed forever with the introduction of the Black-Scholes model for options pricing. However, the story started much earlier with less sophisticated approaches and has evolved significantly over the last century, encompassing notable frameworks such as the binomial tree in discrete time, Read more…

Ex-Dividend Arbitrage

Download PDF Introduction This article will ostensibly be a distillation and discussion of the paper ‘Ex-Dividend Arbitrage in Option Markets’ by Hao, Kalay and Mayhew. [1] They find that a significant fraction of American call option holders do not behave in line with rational exercise policy regarding dividends, leaving money Read more…