Convention for Valuation

A book on synthetic assets would not be complete without a section on quantitative analysis, whether in the context of pricing or risk managementRisk management. The devices that measure, quantify and model risks are part and parcel of the machinery of modern finance. They play a key role in the transfer of risks. This chapter will continue to consider obscure market devices. But as opposed to looking at the specifications of contracts, it will present some examples of quantitative methods.