Tech and NewsT2

Trend-Following Trading System, Quantitative Trading In Python

Wed, 05 May 2021 23:12:36 +0000

In a previous post, we demonstrated the mean-reverting and trending properties of SP500. We subsequently developed a trading system based on the mean-reverting behavior of the index. In this installment, we will develop a trend-following trading strategy. http://tech.harbourfronts.com/trend-following-trading-system-quantitative-trading-in-python/

Is Health Insurance Premiums Tax Deductible?

Fri, 26 Mar 2021 14:02:48 +0000

Many people have the same question, are health insurance premiums tax deductible? This is a very good question and one that you need to consider carefully. Taxation can be complicated but there are ways that it can be worked around too. There are also several situations where you may be able to deduct them from your taxes. There are also situations where you may not be eligible to do this.

The most obvious situation when are health insurance premiums tax deductible? If you use the policy as medical coverage, then you are going to be able to deduct it. This also applies to COBRA, as long as you are not at fault for the policy. If your health insurance company cancels your policy or gives you a notice saying you are not qualified, then you can claim it back. This may be the easiest way to go about this but the deductions are going to depend on whether you are self-employed or not.

Another situation that may allow you to claim back your premiums is if you lose your job or become injured. There are many situations where you may be able to get injured and use the injury as a reason for quitting your job. There are many other situations as well. These include things like death in the family or the loss of your home or vehicle. As long as you can prove that it was an accident related to your health, then you will probably be able to get your policy back.

One of the last questions is when are health insurance premiums tax deductible? The actual date that you will be able to claim this money back depends on several factors. The first is how long you have held your policy. In the case of people who have been with the same insurance company for a number of years, they may have longer to claim back.

Another factor to consider is if you have changed jobs. If you have moved from one company to another in the past year then you should be able to qualify for a prorated return. Usually, the company will have to wait around nine months before they are able to give you the money back. There are some situations though where this won't apply and in these situations are health insurance premiums tax deductible?

You need to check with your tax preparer to see what the regulations are regarding this and whether you would qualify for a prorated return. You also need to make sure that you are not paying too much out for your insurance. If you do qualify for this, you can get a substantial reduction from the premiums that you pay. You can claim the entire amount of the premiums and this will help to save you a lot of money. However, you still need to document the claim and you should always keep copies of any receipts that you are able to get for this purpose.

Photo by mikecohen1872

In the previous post, we introduced the Parkinson #volatility estimator that takes into account the high and low prices of a #stock. In this follow-up post, we present the Garman-Klass volatility estimator that uses not only the high and low but also the

Tue, 23 Jun 2020 22:07:30 +0000

In the previous post, we introduced the Parkinson #volatility estimator that takes into account the high and low prices of a #stock. In this follow-up post, we present the Garman-Klass volatility estimator that uses not only the high and low but also the opening and closing prices. #risk #hedge #quant #trading #investing #finance #vix #investment #stock #spy Garman-Klass (GK) volatility estimator consists of using the returns of the open, high, low, and closing prices in its calculation

Why investors were willing to write Robinhood a $3 billion check during the GameStop chaos

Wed, 03 Feb 2021 17:52:48 +0000

Venture capital investors doubled down on investments in Robinhood even as the company scrambled to raise billions of dollars to meet new capital requirements.

options trading strategies

We are a boutique financial service firm specializing in quantitative analysis, derivative valuation and risk management. Our clients range from asset management firms to industrial, non-financial companies. Our services include: Valuation of financial de

Sat, 14 Nov 2020 13:50:46 +0000

We are a boutique financial service firm specializing in quantitative analysis, derivative valuation and risk management. Our clients range from asset management firms to industrial, non-financial companies. Our services include: Valuation of financial derivatives such as convertible bonds, mortgage backed securities, variance swaps, credit default swaps, collateral debt obligation #finance #derivative #risk #hedge #accounting #quantitative #trading #investing

Performance share units are hypothetical share units that are granted to you based mainly on corporate and/or individual performance. Structurally, they are very similar to restricted stock units except these are more focused on your performance. They are

Thu, 06 Aug 2020 16:37:35 +0000

Performance share units are hypothetical share units that are granted to you based mainly on corporate and/or individual performance. Structurally, they are very similar to restricted stock units except these are more focused on your performance. They are designed to mirror share ownership and you will generally be granted additional units having the same value as dividends being paid on the regular shares. #stock #option #finance #market #trading #investing #risk

Stocks Wobble Between Small Gains and Losses

Wed, 03 Feb 2021 16:10:00 +0000

Technology shares extended their rally as investors cheered earnings from Google parent Alphabet and awaited results from Qualcomm and PayPal.

options trading strategies

How to Determine Implied Dividend Yield-Derivative Valuation in Excel

Sat, 06 Mar 2021 21:29:42 +0000

We discuss ways to determine the dividend yield accurately. We use traded options to determine the implied dividend yield. Specifically, if the options are of European-style exercise, then we can use the put-call parity to create a synthetic single stock future. http://tech.harbourfronts.com/how-to-determine-implied-dividend-yield-derivative-valuation-in-excel/

Dow dips more than 100 points, falling for the first time in 3 days

Wed, 03 Feb 2021 15:45:05 +0000

On Tuesday, the Dow Jones Industrial Average gained more than 475 points.

options trading strategies

The 11 choices that shaped how our favorite games look today, from the color of Sonic's shoes to Zelda's name

Wed, 03 Feb 2021 16:12:58 +0000

The Italian plumber was originally named Jumpman.

Nintendo

From character names to genre changes, the most popular video games hide interesting origin stories.
Lara Croft was initially a supporting character while Mario was once called Jumpman.
From "Metal Gear" to "Mortal Kombat", these choices forever shaped the world's favorite video games.
Visit Business Insider's homepage for more stories.

It's a struggle to imagine a video game world where Mario isn't called "Mario" or Lara Croft isn't the protagonist of "Tomb Raider."

But the games we know and love today could easily have been very different.

From the creative choices behind the color scheme of Sonic's sneakers and the naming of the "Final Fantasy" series to the inspiration behind Princess Zelda's name, here are some of the decisions that shaped the world's biggest video games.

Mario wasn't always called Mario

Jumpman resembled the landlord of the warehouse Nintendo was renting, Mario Segale.

Nintendo

He's one of the most popular video game characters ever and the official mascot of Nintendo — but Mario almost wasn't called Mario.

The Italian plumber was originally named Jumpman when "Donkey Kong" launched on the Japanese market. However, the makers wanted to broaden their horizons when the product launched in the US and thought about real names.

According to PC World, Minoru Arakawa, then-president of Nintendo in the US, realized Jumpman resembled the landlord of the warehouse Nintendo was renting at the time. The man was called Mario Segale, and so "Mario" stuck.

Since his launch, Mario has gone on to star in the "Mario Kart" franchise and the hit "Super Mario Odyssey", which even pays tribute to "Donkey Kong."

Sonic's sneakers were inspired by Michael Jackson

While Sonic is blue to reflect the company color scheme, few know why sneakers are red and white.

Paramount/Sega

When the video game developers at Sega were creating a character for Mario to go up against, they dreamt up Mr. Needlemouse, although he later became Sonic.

The reasoning behind the color scheme was explained by character designer Naoto Ohshima in an interview with Gamasutra: "I also thought that red went well for a character who can run really fast when his legs are spinning."

Although the hedgehog is blue to reflect the company colors, few know that his red and white sneakers were inspired by the cover of Michael Jackson's album "Bad."

The combos in Street Fighter II were an accident

The combos are now a defining feature of the franchise.

Capcom

If the first installment of the "Street Fighter" franchise laid the foundations for its popularity, the second catapulted it to superstardom with its killer combinations.

The team accidentally stumbled upon the combos, which allowed users to carry out basic and special moves in a sequence, Paste Magazine reported.

The combos are now a defining feature of the franchise and have been repeated time and time again.

Final Fantasy really was meant to be final

Before the game launched, video game developer Square was about to go under.

Square Enix

With more than 15 video games now in the franchise, it's hard to believe "Final Fantasy" was a product of difficult circumstances.

Before the game launched, video game developer Square was about to go under.

Square's former president, Hironobu Sakaguchi, named the game "Final Fantasy" because he planned to leave the video game industry if it didn't work out.

More than 33 years later things still don't look very final.

It wasn't always clear Samus from 'Metroid' would be a woman

It was in the 1980s that "Metroid" broke a trend of male-dominated characters.

Neilson Barnard/Getty Images

In 1986, Nintendo launched a game that became a key part of its Nintendo Entertainment System (NES).

While female protagonists are now increasingly common in the video game world, back then it was "Metroid" that broke a trend of male-dominated characters.

The gender of female protagonist Samus Aran isn't revealed until the very end of the game when she removes her armor and shows herself for the first time.

Series co-creator Yoshio Sakamoto told IGN the decision was made when, during a development meeting, a staff member said: "Hey, wouldn't that be kind of cool if it turned out that this person inside the suit was a woman?"

Samus continues to be popular, with the remake "Metroid: Samus Returns" released in 2017, and a new game "Metroid Prime 4" announced, although Nintendo decided to restart development in 2019 after it failed to meet quality standards.

McDonald's and Mike Tyson in 'Punch Out!!'

Mike Tyson Tries to Beat Himself in "Punch-Out!!"

YouTube / The Tonight Show Starring Jimmy Fallon

Perhaps the funniest fact about "Punch Out!!" is that the short and feisty 17-year-old boxer character Little Mac derives his name from the McDonald's classic.

However, Mike Tyson's involvement gave "Punch Out!!" a whole new significance.

Minoru Arakawa, then-president of Nintendo in the US, was determined to include Tyson in the game as he saw a lot of potential in him.

They released Mike Tyson's "Punch Out!!" in 1987, and Uproxx claims Tyson was only paid $50,000 for his image to be used.

The game's Mike Tyson is notoriously difficult to beat — even the boxer himself couldn't do it.

Jean-Claude 'Mortal Kombat' Van Damme

D'Vorah, introduced in "Mortal Kombat X." The "Mortal Kombat" saga began in 1992.

"Mortal Kombat 11"/NetherRealm Studio

The famous "Mortal Kombat" saga, which now includes 11 installments, began in 1992 but initially was meant to be totally different.

Centering around Belgian actor Jean-Claude Van Damme, the original plan was to create a game based on the film "Universal Soldier" and have him fight against hundreds of colorful enemies.

However, negotiations with the actor didn't go well, Mel Magazine reported, and creators Midway decided to completely rebrand it, turning it into one of the most violent games of all time.

The franchise did however include Johnny Cage, a character inspired by Van Damme.

Originally, 'Metal Gear' wasn't a stealth game

"Metal Gear" was born after Kojima was inspired by 1963 classic "The Great Escape."

Konami

Now one of the most famous stealth games in video game history, "Metal Gear" wasn't initially about stealth at all; it was originally intended exclusively as an action game.

However, the limited tech at the time didn't quite accommodate designer Hideo Kojima's storyline and themes.

"Metal Gear" was born after he was inspired by 1963 classic "The Great Escape," which tells the story of how a group of soldiers plans to escape from a prison camp.

Lara Croft wasn't the main character of 'Tomb Raider'

Directed by Roar Uthaug.

Warner Bros. Pictures

When Core Design and Eidos Interactive first presented "Tomb Raider" in its early stages, the main character looked a little too much like movie archaeologist Indiana Jones — for whom they obviously didn't have a license.

To make the character stand out, designer Toby Gard proposed promoting a secondary female character to lead status, replacing the original idea.

They decided to go with it and created the image of Lara Croft as we know her today, with her trademark shorts and signature braid. The rest is history.

Zelda's namesake is a novelist's wife

The "Legend of Zelda" franchise is now hugely successful.

Nintendo

The name of Princess Zelda from "The Legend of Zelda," now a classic on NES, has an interesting literary origin.

Princess Zelda's name was inspired by Zelda Fitzgerald, the wife of "The Great Gatsby" novelist F. Scott Fitzgerald.

Shigeru Miyamoto of Nintendo said he liked the sound of the name and so it stuck.

The franchise is now hugely successful, with several new installments including 2019's "Legend of Zelda: Breath of the Wild."

'Resident Evil' started out as a remake of 'Sweet Home'

"Resident Evil: Village" will be coming to PS5 this year.

Capcom

Now one of the most popular horror franchises and the starting point for the survival horror genre, "Resident Evil" was originally going to be a remake of 1989 Capcom classic "Sweet Home."

However, the makers decided to go bigger, changing their idea from a first-person shooter to a third-person one. They took inspiration from the Overlook Hotel of "The Shining," and from other movies featuring haunted houses.

Read the original article on Business Insider

options trading strategies

Perfect Competition: Definition, Market, Meaning, Example, Graph

Thu, 21 Mar 2024 03:59:10 +0000

Perfect competition is used to describe a market structure in which businesses only make just enough profit to keep running. It is considered the most ideal market structure because it leads to the efficient allocation of resources and benefits both consumers and producers.

Perfect competition often gets overlooked because no one wants to be in the same position forever, but it provides key insights into market dynamics and how to succeed in a competitive landscape.

By understanding how it works, businesses can stay competitive and consumers can receive products at the best possible prices.

What is Perfect Competition?

Perfect competition is a theory in economics - it's not often seen in real-life markets, but it's a good model to show how prices change based on what's for sale and what people want to buy.

In a perfect competition market, there are lots of buyers and sellers - prices are set by what's available and what people want. Businesses make just enough money to keep going - if they made more, new businesses would start up and profits would go down.

This theory gives a clear and simple view of how markets work, without any personal views or feelings.

In simple words, perfect competition means that there are enough businesses selling a product or service to keep the market competitive - so no one company can control the market.

How Perfect Competition Works

Perfect competition works as a benchmark to the other market structures.

It's completely opposite of a monopoly, where there is only one seller and the market can be controlled. In perfect competition, businesses are price takers - they have no control over the price of their product or service.

This is because there are so many businesses offering similar products that consumers can easily go to another business if the price is too high. This forces businesses to set a competitive price in order to stay in the market.

What makes perfect competition unique is that it's a self-regulating system. Inefficient businesses will be forced to either improve or exit the market, while efficient businesses will thrive.

They have to follow an ecosystem where the price charged for their product or service is determined by market forces of supply and demand.

Characteristics of Perfect Competition

Here are some of the key characteristics of perfect competition:

A large number of buyers and sellers: The more businesses there are, the more competitive the market becomes.
Homogeneous products: All businesses sell identical products, making it easy for consumers to switch between brands without any significant difference in quality or price.
Perfect information: Both buyers and sellers have access to complete information about the market, including prices, production techniques, and availability of products.
Low barriers to entry and exit: It's relatively easy for new businesses to enter or leave the market without seeing too many losses and expenses. This helps to maintain a healthy level of competition.
Market shares don't have a significant impact: No single business has enough power to control the market, as there are numerous businesses offering similar products.
Perfect resource mobility: Resources like labor and capital can easily move from one industry to another without any barriers or restrictions.

Conclusion

Although perfect competition is a theoretical idea, it can still serve as a useful standard for real-world markets. It emphasizes the significance of competition in encouraging businesses to continuously enhance and innovate, which ultimately benefits consumers with better quality products at lower prices. While perfect competition may not exist in reality, it still plays a critical role in evaluating the effectiveness and competitiveness of markets.

Originally Published Here: Perfect Competition: Definition, Market, Meaning, Example, Graph

What value does quantitative investing actually create for society? Quantitative investing is about arbitraging the small inefficiencies, so maybe it will make prices slightly more efficient. But is that worth the enormous infrastructure investment being

Fri, 13 Nov 2020 15:20:09 +0000

What value does quantitative investing actually create for society? Quantitative investing is about arbitraging the small inefficiencies, so maybe it will make prices slightly more efficient. But is that worth the enormous infrastructure investment being spent on it? #derivative #trading #risk #stock #option #finance #market #investing #quant

Exponentially Weighted Historical Volatility In Excel

Thu, 04 Mar 2021 23:50:24 +0000

We use the Exponential Weighted (EW) historical volatility that assigns bigger weights to the recent returns, and smaller weights to the past ones. The EWHV is more responsive than the equally weighted historical volatility. Also, the decline of the EWHV from its peak is smoother than that of the equally weighted HV. http://tech.harbourfronts.com/exponentially-weighted-historical-volatility-in-excel-volatility-analysis-in-excel/

We present an extension of the Garman-Klass volatility estimator that also takes into consideration overnight jumps. Garman-Klass-Yang-Zhang (GKYZ) volatility estimator consists of using the returns of open, high, low, and closing prices in its calculatio

Tue, 30 Jun 2020 22:07:10 +0000

We present an extension of the Garman-Klass volatility estimator that also takes into consideration overnight jumps. Garman-Klass-Yang-Zhang (GKYZ) volatility estimator consists of using the returns of open, high, low, and closing prices in its calculation. It also uses the previous day’s closing price. #volatility #trading #investing #excel #python #derivative #stock

Compare Credit Cards vs Line of Credit to Find Out Which Offers Offer You the Cheapest and Most Convenience

Sun, 10 Jan 2021 14:04:53 +0000

Getting the best credit card deals is a challenge that many Americans face every year. The constant changes in the financial industry can make choosing a credit card difficult for many consumers. Credit cards offer many benefits, but there are differences between the different credit cards and their respective limits of credit. Most credit card companies are competing to offer you the best credit card deals possible. In order to get the best credit card offers, you need to take a look at how those cards benefit you.

Some credit cards limit your purchases to a specific dollar amount each month. This limit is usually set for a certain number of months. However, many credit cards offer a credit card that allows you to pay no interest while using your credit card balance for purchases. This can save hundreds of dollars per month, depending on how much you use your credit card. If you have good credit, this may be an attractive credit card benefit for you.

Another credit card or line of credit comparison is a revolving credit card that allows you a credit limit of credit whenever you spend money. You can increase the credit limit as much as you like for an unlimited period of time. These types of credit cards generally do not come with any annual fees, but there may be a balance transfer fee at the end of your introductory period. This means that even though you will have interest charged on your balances, you will also have to pay that fee.

Some credit card companies offer cashback rewards programs. These programs can provide cashback on almost all purchases. They vary from credit card companies to credit card companies. You can find credit cards that give you cashback on gas, groceries, department store items, airline tickets, and other purchases. This type of credit card allows you to save money by buying things that you already know you would buy if you had the money.

If you are currently looking for a credit card, one of the best things that you can do is compare credit cards vs line of credit to determine which offers are the best deal. Look at the APR, or Annual Percentage Rate, to determine if this type of credit card is a good choice for your needs. Remember, the APR only tells you what the interest will be, not the total cost. The amount of interest that you pay is the cost you will pay on the entire outstanding balance. This is the most common reason why people look for lower credit limits. If you find the credit card with the lowest balance that has the lowest APR that also has an emergency funds feature, you can save money because you will have money in reserve when an emergency arises.

In addition, you should consider the transfer charges between credit cards. Some credit cards include an annual fee when transferring balances. This can add up to a large amount over the life of the loan, so you may want to look into all options before signing up for a credit card. Remember that just because there is a lower APR does not mean that it will have the same service as a higher APR. Most credit cards offer different incentives and rewards programs. Shop around to determine which offers are going to offer you the most convenience while saving the most money.

AstraZeneca says it's developing a 'next generation' COVID-19 vaccine to target fast-spreading variants, and it could be ready by Autumn

Wed, 03 Feb 2021 15:59:44 +0000

82-year-old Brian Pinker receives the Oxford University/AstraZeneca COVID-19 vaccine on January 4, 2021 in Oxford, England.

Steve Parsons - WPA Pool/Getty Images

UK pharma giant AstraZeneca and Oxford University are co-developing a 'next generation' COVID-19 vaccine.
These vaccines will be designed to combat coronavirus variants, including those found in the UK and South Africa.
Mene Pangalos, executive vice-president at AstraZeneca, said they're aiming to have it ready by autumn, per Reuters.
Visit the Business section of Insider for more stories.

AstraZeneca and Oxford University have co-developed a "next generation" COVID-19 vaccine to tackle new coronavirus variants, and it could be available in the Autumn, its executive vice-president said Wednesday.

"We're very much aiming to try and have something ready by the autumn, so this year," Mene Pangalos said, per Reuters.

AstraZeneca has already co-developed a COVID-19 vaccine that is authorized for emergency use in the UK, the EU, and seven other countries.

But there is a drive for new vaccines that specifically target coronavirus variants. Studies suggest the shots available right now may not work as well on certain variants, especially against a mutation found in the variant from South Africa. This mutation has also been detected in some cases of the variant found in the UK.

Both of these variants have been identified in the US.

"We're working very hard and we're already talking about not just the variants that we have to make in laboratories, but also the clinical studies that we need to run," Pangalos said.

Pfizer and Moderna - drugmakers that have also developed existing COVID-19 shots - are working on ways of protecting against coronavirus variants too.

Pfizer said January 26 that it was working on booster shots. Moderna said January 25 that it would develop a new version of its COVID-19 shot to fight 501.Y.V2, the variant found in South Africa.

UK pharma giant GlaxoSmithKline announced Wednesday that it has agreed to co-develop vaccines to target multiple coronavirus variants at once with German biotech CureVac.

Read the original article on Business Insider

options trading strategies

Valuation of Employee Stock Options is different from regular stock options. In this post, we are going to implement the approach proposed by Hull and White. Specifically, we are going to implement the vesting and forfeiture rate features. Other features

Sun, 02 Aug 2020 21:15:24 +0000

Valuation of Employee Stock Options is different from regular stock options. In this post, we are going to implement the approach proposed by Hull and White. Specifically, we are going to implement the vesting and forfeiture rate features. Other features can also be implemented without difficulty #stock #option #quant #risk #investing #trading #volatility

Chipotle is doubling down on drive-thru 'Chipotlanes' as they prove successful - here's what it's like to use one

Wed, 03 Feb 2021 15:38:24 +0000

The logo of Chipotle Mexican Grill is seen at the Chipotle Next Kitchen in Manhattan

Reuters

Chipotle added drive-thrus to some locations, called Chipotlanes.
I tried out the new Chipotlane in Canandaigua, New York.
Chipotlanes are part of the trend of fast-food chains investing in drive-thru and app technology.
Visit Business Insider's homepage for more stories.

Chipotle joined other fast food brands investing in drive-thru technology and online ordering with Chipotlanes. I visited one in Canandaigua, New York to document the experience.

By early 2019, Chipotle had 10 US Chipotlanes, and executives told Insider that they planned to open dozens more, while also investing in digital ordering. Chipotle's digital sales exploded during the COVID-19 pandemic, making up more than half of sales in 2020. Now, the brand is investing in building more online-order only "Chipotlanes" and opening new locations. CEO Brian Niccol said in an earnings call that Chipotle plans to more than double its locations.

With promising results from the fourth quarter of 2020, the new drive-thru lanes look like a key to the chain's continued success. According to analysts from Stifel, Chipotle shows some of the"most compelling unit growth prospects" based on the success of Chipotlanes.

The expansion comes as fast-food and fast-casual brands across the country are optimizing drive-thrus. Drive-thru orders have grown across the fast-food industry since the pandemic closed many dining rooms. McDonald's, already a drive-thru heavy hitter with 25,000 worldwide, says that 70% of sales in top markets are drive-thru orders. Even salad chain Sweetgreen is jumping on the trend.

Chipotle works on an assembly line type model, where customers move down the line of ingredients to choose what they want in a burrito or bowl. Chipotle locations also run a second assembly line behind the scenes dubbed the "digital make line" in 2019. That section is focused on making mobile and delivery orders, the kind that would make up business at a Chipotlane. With digital sales exploding, Chipotle announced plans to hire 10,000 new employees to handle digital sales this summer.

Here's what it's like to order from a Chipotlane.

Downloading the Chipotle app is necessary for all mobile orders. When the app is open, it shows nearby Chipotle locations, and specifically marks Chipotlane locations.

Chipotle app.

Chipotle

Select a particular restaurant to get the exact address, phone number, and hours. From there, you can choose to order from that location or favorite it.

Chipotle app.

Chipotle

From there, the entire menu is on the app. I actually prefer digital ordering at Chipotle in particular because the line doesn't get held up by one person looking at the options.

Chipotle app.

Chipotle

It's also easy to duplicate orders and add on sides like chips and guac before checkout.

Chipotle app.

Chipotle

You can choose to either pickup in the drive-thru or inside when you place your order.

Chipotle app.

Chipotle

You also choose a pickup time so your food is ready when you get there.

Chipotle app.

Chipotle

Pay with Apple Pay or another credit card by entering information into the app.

Chipotle app.

Chipotle

The actual Chipotle, which opened in December, was not very busy. It was in a strip mall-like plaza with a few other stores and an urgent care center.

Chipotlane.

Mary Meisenzahl/Insider

The doors advertised contactless pickup and delivery, although you could also go inside and order at the counter.

Chipotlane.

Mary Meisenzahl/Insider

For online orderers who opted not to use the drive-thru, a pickup counter had orders set out by last name.

Chipotlane.

Mary Meisenzahl/Insider

But we weren't here for that. Outside, signs directed drivers to the drive-thru.

Chipotlane.

Mary Meisenzahl/Insider

The drive-thru is fairly standard, without the multiple lanes or interactive boards some brands are adding. It only has one window though, because it is only for picking up food; all ordering and payment is already done by the time you get there.

Chipotlane.

Mary Meisenzahl/Insider

The food comes in a large paper bag with a receipt stapled on it.

Chipotlane.

Mary Meisenzahl/Insider

Each individual order, like my burrito bowl, also has a sticker with the name and ingredients, so you can immediately see that you got the right order.

Chipotlane.

Mary Meisenzahl/Insider

Drive-thrus and mobile ordering are the future and we're only going to see more of it. Also it's ideal for a place like Chipotle with a lot of customization

Read the original article on Business Insider

options trading strategies

Asset Price Dynamics and Trading Strategy’s PnL Volatility

Fri, 31 Dec 2021 03:15:55 +0000

In a previous post, we discussed how the dynamics of assets are priced in the options prices. We recently came across a newly published article [1] that explored the same topic but from a different perspective that does not involve options.

The conclusion of the new article [1] is consistent with the previous one [2]; that is, the volatilities of mean-reverting assets are smaller than those of assets that follow the GBM process. The reverse applies to trending assets.

In this post, we are going to investigate whether the mean-reverting/trending property of an asset has any impact on a trading strategy’s PnL volatility.

To do this, we first generate asset prices using Monte Carlo simulations. We evolve the asset prices in both mean-reverting and trending regimes for 500 days. We then apply a simple trading system to the simulated asset prices. The trading system is as follows,

Go LONG when the Relative Strength Index <40, SHORT when the Relative Strength Index >70

The picture below shows the Autocorrelation Functions (ACF) of the asset returns. Panels (a) and (b) present ACFs of the trending and mean-reverting assets respectively. It’s clear that the assets are trending and mean-reverting at lag 3, respectively.

[caption id="attachment_410" align="aligncenter" width="576"] Autocorrelation Functions of asset returns[/caption]

The picture below shows the simulated equity curves of the trading strategy applied to the trending (a) and mean-reverting (b) assets. The starting capital is $100 in both cases.

[caption id="attachment_411" align="aligncenter" width="583"] Equity curves of the trading strategy[/caption]

Visually, we do not observe any difference in terms of PnL dispersion. Indeed, the standard deviation of the terminal wealth at day 500 is $18.9 in the case of the trending asset (a), and $17.3 in the case of the mean-reverting asset (b). Is the difference statistically significant? We don’t think so.

This numerical experiment shows that the PnL volatility of a trading strategy has little to do with the underlying asset’ mean-reverting/trending property. Maybe it depends more on the strategy itself? (Note that in this example, we utilize a mean-reverting strategy). What would happen at the portfolio level?

References

[1] L. Middleton, J. Dodd, S. Rijavec, Trading styles and long-run variance of asset prices, 2021, arXiv:2109.08242

[2] Liao, S.L. and Chen, C.C. (2006), The valuation of European options when asset returns are autocorrelated, Journal of Futures Markets, 26, 85-102.

Learn More Here: Asset Price Dynamics and Trading Strategy’s PnL Volatility

A Pricing Model for Earthquake Bonds

Mon, 18 Mar 2024 04:25:06 +0000

A catastrophe bond, commonly referred to as a cat bond, is a type of insurance-linked security that allows insurers and reinsurers to transfer the risk associated with catastrophic events, such as natural disasters, to capital market investors. These bonds are typically issued by insurance companies or special purpose vehicles (SPVs) and are designed to provide financial protection against specified catastrophic events, such as hurricanes, earthquakes, or pandemics.

In the event of a qualifying catastrophe, the issuer may not have to repay some or all of the principal to investors, thereby providing much-needed funds to cover the losses incurred by the insured parties. However, if no qualifying event occurs during the bond's term, investors receive periodic coupon payments and the return of their principal at maturity.

An earthquake bond is a type of catastrophe bond, in which an insurer, reinsurer, or government, transfers a portion or all of the earthquake risk to investors in return for higher yields. Earthquake bonds are crucial in countries prone to earthquakes. However, pricing them presents challenges. Reference [1] developed a pricing model for earthquake bonds. The authors pointed out,

This research presents an EB pricing model involving inconstant event intensity and the maximum strength of extreme earthquakes under the risk-neutral pricing measure. Focusing on extreme earthquakes simplifies the modeling process and data collection and computing time compared to considering the infinite frequency of earthquakes occurring over a continuous time interval. The inconstant intensity of the event is accommodated by an inhomogeneous Poisson process, while the maximum strength is modeled using extreme value theory (EVT). Then, the model is applied to earthquake data in Indonesia, the country with the second highest frequency of earthquakes worldwide. Finally, the variable sensitivities of EB prices are also analyzed.

In short, the authors modeled the risk-free interest rate using the Cox–Ingersoll–Ross model. They accommodated the variable intensity of events with an inhomogeneous Poisson process, while extreme value theory (EVT) was used to model the maximum strength.

This paper makes an important contribution to the pricing of catastrophe bonds, aiding countries in effectively managing risks associated with natural disasters.

Let us know what you think in the comments below or in the discussion forum.

References

[1] Riza Andrian Ibrahim, Sukono, Herlina Napitupulu and Rose Irnawaty Ibrahim, Earthquake Bond Pricing Model Involving the Inconstant Event Intensity and Maximum Strength, Mathematics 2024, 12, 786

Originally Published Here: A Pricing Model for Earthquake Bonds

We presented statistical tests for the Australia/Canada country ETF pair. In this follow-up post, we are going to implement a trading strategy using this pair in Python. We utilize the remaining 2 years out-of-sample data to generate trading signals and c

Sun, 06 Dec 2020 21:36:39 +0000

We presented statistical tests for the Australia/Canada country ETF pair. In this follow-up post, we are going to implement a trading strategy using this pair in Python. We utilize the remaining 2 years out-of-sample data to generate trading signals and calculate strategy performance. #statistics #arbitrage #etf #trading #quantitative #python #algorithmic

The outlook for 2021 – Credit risk

Mon, 01 Feb 2021 13:38:42 +0000

Derivative Valuation

Derivative Valuation Services

Sat, 14 Nov 2020 15:11:21 +0000

McDonald's gets approval to sue its ousted CEO, alleging he covered up sexting and inappropriate relationships with subordinates

Wed, 03 Feb 2021 16:07:15 +0000

McDonald's has the go-ahead to sue its former CEO.

Getty Images

A judge denied former McDonald's CEO Steve Easterbrook's motion to dismiss a case against him.
The company alleges Easterbrook covered up sexual relationships with three subordinates.
McDonald's argued it would not have granted Easterbrook severance if he did not delete sexts.
Visit the Business section of Insider for more stories.

A Delaware judge has approved McDonald's efforts to sue former CEO Steve Easterbrook over allegations the ex-executive covered up sexual relationships with employees.

On Tuesday, Vice Chancellor Joseph Slights III of the Court of Chancery in Delaware denied Easterbrook's motion to dismiss the company's lawsuit against him.

McDonald's sued Easterbrook in August, alleging that the company found new evidence that he covered up sexual relationships with three female employees during his last year leading the company. According to McDonald's, investigators uncovered "dozens of nude, partially nude, or sexually explicit photographs and videos of various women," including three McDonald's employees, on the company's servers.

Easterbrook was terminated by McDonald's in November 2019 after an investigation into his relationship with a different McDonald's employee. At the time, McDonald's investigators found evidence that the relationship was sexual but not physical. Easterbrook was terminated and given a severance package worth up to $57 million.

McDonald's alleges that Easterbrook deleted photos and videos from his phone that would have lead investigators to discover his sexual relationships with other women in 2019. If McDonald's had this information, the company says, it would not have granted Easterbrook severance.

Easterbrook's attorney argued that McDonald's could have accessed the evidence on its servers when the severance agreement was signed in November 2019. Further, Easterbrook's attorney argued, McDonald's filed its lawsuit in the wrong state. An attorney for Easterbrook did not respond to Insider's request for comment.

Slights, the judge, was not convinced by Easterbrook's attorneys' arguments, denying Easterbrook's motion to dismiss.

"With the Court's denial of Steve Easterbrook's motion to dismiss, we can now move forward with our case seeking the return of his severance payment and to hold him accountable for his lies and his efforts to destroy evidence," McDonald's told Insider in a statement.

"He violated the Company's policies, disrespected its values, and abused the trust of his co-workers, the Board, our franchisees, and our shareholders," the statement continued. "We look forward to bringing the evidence of Easterbrook's misconduct before the Court and to proving our case."

Read the inside story of how Easterbrook went from the chain's savior to its worst nightmare here.

Read the original article on Business Insider

options trading strategies

In a previous post, we presented an example of volatility analysis using Close-to-Close historical volatility. In this post, we are going to use the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model to forecast volatility. #volatilit

Mon, 26 Oct 2020 13:07:25 +0000

In a previous post, we presented an example of volatility analysis using Close-to-Close historical volatility. In this post, we are going to use the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model to forecast volatility. #volatility #trading #python #econometrics #finance #investing #risk

S&P 500 is flat after two-day rally, Alphabet jumps on strong earnings

Wed, 03 Feb 2021 18:06:15 +0000

On Tuesday, the Dow Jones Industrial Average gained more than 475 points.

options trading strategies

Garman-Klass-Yang-Zhang Historical Volatility Calculation – Volatility Analysis in Python

Tue, 28 Jul 2020 18:18:52 +0000

We present an extension of the Garman-Klass volatility estimator that also takes into consideration overnight jumps. Garman-Klass-Yang-Zhang (GKYZ) volatility estimator consists of using the returns of open, high, low, and closing prices in its calculation. It also uses the previous day’s closing price. http://tech.harbourfronts.com/trading/garman-klass-yang-zhang-historical-volatility-calculation-volatility-analysis-python/

Another reason for third stimulus checks: Jobless benefits not reaching 8 million people

Wed, 03 Feb 2021 16:58:12 +0000

Three in 4 unemployed workers don't get jobless benefits, making a third round of stimulus checks the best way to offer support, according to a analysis.

options trading strategies

We are going to perform some numerical experiments. Specifically, we are going to use the portfolio optimization program developed in the previous post in order to study the effect of diversification. #derivative #trading #risk #python #investing #finance

Mon, 01 Feb 2021 20:11:27 +0000

We are going to perform some numerical experiments. Specifically, we are going to use the portfolio optimization program developed in the previous post in order to study the effect of diversification. #derivative #trading #risk #python #investing #finance #gold

Google to launch its first foldable phone as Samsung ups the ante and starts making rollable screens

Wed, 03 Feb 2021 16:25:13 +0000

This is an automated machine translation of an article published by Business Insider in a different language. Machine translations can generate errors or inaccuracies; we will continue the work to improve these translations. You can find the original version here.

After Samsung and Huawei took forays into the world of foldable smartphones, Google could be the next manufacturer to enter this field. The company may be preparing its first folding mobile for 2021, as revealed by a patent that has recently been registered.

Google has registered the patent for a foldable smartphone at the World Intellectual Property Organization, and it shows a design with a hinge mechanism in several segments that resembles other foldable mobiles such as the Huawei Mate X or the Samsung Galaxy Fold, which allows for the opening and closing of the mobile.

This hinge would protrude towards the outside of the device and would be under the mobile, something that could prove troublesome when leaving it on a table, although it could also act as a support to leave it with the screen facing you.

The mobile screen, on the other hand, would face inward while the mobile is folded, protecting it from possible damage it could receive when in your pocket or on a table. But, at the same time, this has the disadvantage of having to open the cell phone every time you want to use it. Although the door to an external screen, as with the Galaxy Fold and Galaxy Z Flip, is open.

At the moment, nothing more is known about this device whose patent has just been published, but it is possible that as the project continues, more information about it will become known. It is likely that, as happened with Samsung and Huawei at the time, Google's folding mobile will not be its flagship as such, but a complementary mobile to this and with a much higher price.

Apple offers a new hint of what its future foldable iPhone could look like

Samsung, meanwhile, is already developing and manufacturing new rollable screens. The firm may seek to include technology such as variable refresh rate in this type of panels. These panels that could possibly be intended not only to increase its customer base but also to be used in some of its future cell phones. In fact, the only concept that Samsung has not yet explored is that of rollable cell phones.

Read the original article on Business Insider

options trading strategies

The Weekend Effect in The Market Indices

Mon, 01 Jan 2024 02:11:06 +0000

The weekend (or Monday) effect in the stock market refers to the phenomenon where stock returns exhibit different patterns on Mondays compared to the rest of the week. Historically, there has been a tendency for stock prices to be lower on Mondays. Various theories attempt to explain the weekend effect, including investor behaviour, news over the weekend, and the impact of events occurring during the weekend on market sentiment.

In this post, we'll investigate the weekend effect in the market indices using data from Yahoo Finance spanning January 2001 to December 2023. Specifically we choose SPY, which tracks the SP500, and the volatility index, VIX.

Our strategy involves taking a long position in SPY at Friday's close and exiting the position at Monday's close, or the next business day’s close if Monday is a holiday. The figure below depicts the cumulative, non-compounded return of the strategy.

[caption id="attachment_444" align="aligncenter" width="477"] Cumulative return of holding SPY over the weekend[/caption]

From the figure, we observe that holding SPY over the weekend resulted in negative returns during the GFC, Covid pandemic, and the recent 2022 bear market. The overall return is flat-ish, indicating a low reward/risk ratio for holding the SPY over the weekend.

Next, we analyze the change in the VIX index during the weekend. We compute the change in the VIX index from Friday's close to the close of the next business day and plot the cumulative difference in the figure below. A noticeable upward trend is observed in the cumulative difference. This result indicates that maintaining a long vega/gamma position over the weekend would offer a favourable reward-to-risk trade.

[caption id="attachment_447" align="aligncenter" width="503"] Cumulative difference of the VIX index over the weekend[/caption]

It's important to note, however, that investing directly in the spot VIX is not possible. To confirm and capitalize on the weekend effect in the volatility index, one would have to:

Trade a volatility ETN, or
Trade a delta-hedged option position

Each of these approaches introduces additional risk factors, specifically 1- the roll yield and contango, and 2- PnL originating from gamma and theta. These issues will be addressed in the next installment.

See More Here: The Weekend Effect in The Market Indices

Short Volatility Funds Lost Money During The Pandemic

Thu, 27 Aug 2020 23:07:17 +0000

Short Volatility Funds Lost Money During The Pandemic

11 choices that shaped our favorite games, from glitches in 'Street Fighter II' to Zelda's name

Wed, 03 Feb 2021 16:12:58 +0000

The Italian plumber was originally named Jumpman.

Nintendo

From character names to genre changes, the most popular video games hide interesting origin stories.
Lara Croft was initially a supporting character while Mario was once called Jumpman.
From "Metal Gear" to "Mortal Kombat", these choices forever shaped the world's favorite video games.
Visit Business Insider's homepage for more stories.

It's a struggle to imagine a video game world where Mario isn't called "Mario" or Lara Croft isn't the protagonist of "Tomb Raider."

But the games we know and love today could easily have been very different.

Mario wasn't always called Mario

Jumpman resembled the landlord of the warehouse Nintendo was renting, Mario Segale.

Nintendo

He's one of the most popular video game characters ever and the official mascot of Nintendo — but Mario almost wasn't called Mario.

Since his launch, Mario has gone on to star in the "Mario Kart" franchise and the hit "Super Mario Odyssey", which even pays tribute to "Donkey Kong."

Sonic's sneakers were inspired by Michael Jackson

While Sonic is blue to reflect the company color scheme, few know why sneakers are red and white.

Paramount/Sega

When the video game developers at Sega were creating a character for Mario to go up against, they dreamt up Mr. Needlemouse, although he later became Sonic.

Although the hedgehog is blue to reflect the company colors, few know that his red and white sneakers were inspired by the cover of Michael Jackson's album "Bad."

The combos in Street Fighter II were an accident

The combos are now a defining feature of the franchise.

Capcom

If the first installment of the "Street Fighter" franchise laid the foundations for its popularity, the second catapulted it to superstardom with its killer combinations.

The team accidentally stumbled upon the combos, which allowed users to carry out basic and special moves in a sequence, Paste Magazine reported.

The combos are now a defining feature of the franchise and have been repeated time and time again.

Final Fantasy really was meant to be final

Before the game launched, video game developer Square was about to go under.

Square Enix

With more than 15 video games now in the franchise, it's hard to believe "Final Fantasy" was a product of difficult circumstances.

Before the game launched, video game developer Square was about to go under.

Square's former president, Hironobu Sakaguchi, named the game "Final Fantasy" because he planned to leave the video game industry if it didn't work out.

More than 33 years later things still don't look very final.

It wasn't always clear Samus from 'Metroid' would be a woman

It was in the 1980s that "Metroid" broke a trend of male-dominated characters.

Neilson Barnard/Getty Images

In 1986, Nintendo launched a game that became a key part of its Nintendo Entertainment System (NES).

While female protagonists are now increasingly common in the video game world, back then it was "Metroid" that broke a trend of male-dominated characters.

The gender of female protagonist Samus Aran isn't revealed until the very end of the game when she removes her armor and shows herself for the first time.

McDonald's and Mike Tyson in 'Punch Out!!'

Mike Tyson Tries to Beat Himself in "Punch-Out!!"

YouTube / The Tonight Show Starring Jimmy Fallon

Perhaps the funniest fact about "Punch Out!!" is that the short and feisty 17-year-old boxer character Little Mac derives his name from the McDonald's classic.

However, Mike Tyson's involvement gave "Punch Out!!" a whole new significance.

Minoru Arakawa, then-president of Nintendo in the US, was determined to include Tyson in the game as he saw a lot of potential in him.

They released Mike Tyson's "Punch Out!!" in 1987, and Uproxx claims Tyson was only paid $50,000 for his image to be used.

The game's Mike Tyson is notoriously difficult to beat — even the boxer himself couldn't do it.

Jean-Claude 'Mortal Kombat' Van Damme

D'Vorah, introduced in "Mortal Kombat X." The "Mortal Kombat" saga began in 1992.

"Mortal Kombat 11"/NetherRealm Studio

The famous "Mortal Kombat" saga, which now includes 11 installments, began in 1992 but initially was meant to be totally different.

Centering around Belgian actor Jean-Claude Van Damme, the original plan was to create a game based on the film "Universal Soldier" and have him fight against hundreds of colorful enemies.

However, negotiations with the actor didn't go well, Mel Magazine reported, and creators Midway decided to completely rebrand it, turning it into one of the most violent games of all time.

The franchise did however include Johnny Cage, a character inspired by Van Damme.

Originally, 'Metal Gear' wasn't a stealth game

"Metal Gear" was born after Kojima was inspired by 1963 classic "The Great Escape."

Konami

Now one of the most famous stealth games in video game history, "Metal Gear" wasn't initially about stealth at all; it was originally intended exclusively as an action game.

However, the limited tech at the time didn't quite accommodate designer Hideo Kojima's storyline and themes.

"Metal Gear" was born after he was inspired by 1963 classic "The Great Escape," which tells the story of how a group of soldiers plans to escape from a prison camp.

Lara Croft wasn't the main character of 'Tomb Raider'

Directed by Roar Uthaug.

Warner Bros. Pictures

To make the character stand out, designer Toby Gard proposed promoting a secondary female character to lead status, replacing the original idea.

They decided to go with it and created the image of Lara Croft as we know her today, with her trademark shorts and signature braid. The rest is history.

Zelda's namesake is a novelist's wife

The "Legend of Zelda" franchise is now hugely successful.

Nintendo

The name of Princess Zelda from "The Legend of Zelda," now a classic on NES, has an interesting literary origin.

Princess Zelda's name was inspired by Zelda Fitzgerald, the wife of "The Great Gatsby" novelist F. Scott Fitzgerald.

Shigeru Miyamoto of Nintendo said he liked the sound of the name and so it stuck.

The franchise is now hugely successful, with several new installments including 2019's "Legend of Zelda: Breath of the Wild."

'Resident Evil' started out as a remake of 'Sweet Home'

"Resident Evil: Village" will be coming to PS5 this year.

Capcom

Now one of the most popular horror franchises and the starting point for the survival horror genre, "Resident Evil" was originally going to be a remake of 1989 Capcom classic "Sweet Home."

Read the original article on Business Insider

options trading strategies

JOIN OUR EVENT FEBRUARY 10: Hear from healthcare's biggest VCs on the future of digital health, biotech, and startups

Wed, 03 Feb 2021 16:33:49 +0000

Oak HC/FT; Venrock; CRV; Menlo Ventures; Samantha Lee/Business Insider

By most measures, 2020 was a pivotal year for healthcare. The coronavirus pandemic upended U.S. healthcare as we know it, highlighting brutal disparities in quality and access to care while pushing many hospitals to the financial brink. There was also a historically fast vaccine development and emergency authorization process, and large-scale testing the likes of which the United States had never attempted before.

The unrelenting attention on the U.S. healthcare system has driven record levels of investor interest, leading to all-time high fundraising amounts and eye-catching mergers and IPOs. Investors and other industry insiders have maintained that the pandemic, for all its devastation and upheaval, have pushed the healthcare industry forward 10 years in just six months.

Join us on Wednesday, February 10, at 3 p.m. ET / 12 p.m. PT as Business Insider's senior healthcare reporter Megan Hernbroth hosts a live panel discussion with prominent healthcare venture capitalists on the future of healthcare.

In this webinar, we will talk to some of healthcare's most notable investors including CRV's Kristin Baker Spohn, Menlo Ventures partner Greg Yap, Oak HC/FT's Andrew Adams, and Venrock partner Racquel Bracken.

These insiders will give a glimpse into what the industry is talking about after a tumultuous year in healthcare, and share their predictions for what is still to come in 2021.

Register for our event here if you're a Business Insider subscriber.

If not, you can sign up here.

Read the original article on Business Insider

options trading strategies

CMBC MSTAR shines in volatile markets

Thu, 13 Aug 2020 12:23:24 +0000

Derivative Valuation

Mean - Reverting Trading System - Quantitative Trading In Python

Mon, 26 Apr 2021 23:25:12 +0000

We develop a simple trading system exploiting the mean-reverting behaviour of the SP500 market index. To generate buy and sell signals, we will use simple moving averages as noise filters. Since we know that the SP500 is mean-reverting in a short term, we will use short-term moving averages. http://tech.harbourfronts.com/mean-reverting-trading-system-quantitative-trading-in-python/

Are AI-Powered Hedge Funds Outperforming?

Wed, 09 Sep 2020 19:07:17 +0000

Are AI-Powered Hedge Funds Outperforming?

Enterprise Fund: Definition, Accounting, Importance, Example

Wed, 20 Mar 2024 01:28:09 +0000

There are several types of funds in governmental accounting, each serving specific purposes and accounting for different activities. These funds fall into three broad categories, including governmental, fiduciary, and proprietary funds. Furthermore, each category can have its classifications. One of the classifications within proprietary funds is enterprise funds.

What is an Enterprise Fund?

An enterprise fund in governmental accounting serves as a distinct financial mechanism to separate activities that closely resemble those of a private business or commercial entity. Unlike governmental funds catering to general government functions, enterprise funds are designated for self-sustaining ventures. These funds operate on a business model, generating revenue by selling goods or services to the public.

In essence, enterprise funds are a specialized accounting tool that enables governments to efficiently manage and track revenues and expenditures associated with business-oriented activities. By delineating these self-supporting ventures, such as utilities and transportation services, governments can better assess their financial viability.

How does the Enterprise Fund work?

Enterprise funds function as specialized financial entities within governmental structures, designed to manage business-like activities independently. The primary mechanism involves generating revenue by selling goods or services such as utilities, parking, or public transportation. The funds operate on a self-sufficiency principle, where the generated revenue covers all associated costs, including operational, maintenance, and capital expenses.

This separation facilitates distinct financial statements, budgeting, and accounting practices, providing clarity in evaluating the financial performance of each enterprise fund. Financial management within enterprise funds encompasses budgeting, accounting for assets and liabilities, and conducting regular performance evaluations. Performance evaluations help assess the efficiency and effectiveness of the funds.

What is the importance of the Enterprise Fund?

Enterprise funds hold significant importance within governmental structures, offering a strategic framework that enhances financial transparency and accountability. By segregating business-like activities, these funds enable clear and distinct financial reporting, providing stakeholders with an inclusive understanding of the performance of each self-sustaining operation. This transparency fosters public trust and facilitates effective decision-making by policymakers.

The direct correlation between revenue generation and associated costs ensures accountability, as financial challenges or successes get attributed to the specific enterprise fund. This separation promotes adherence to accounting standards and reporting requirements, contributing to accurate and reliable financial reporting that aligns with regulatory frameworks. Moreover, enterprise funds play a vital role in promoting efficient resource management and strategic decision-making.

What is the accounting for Enterprise Fund?

Accounting for enterprise funds involves thorough financial management to ensure transparency, accountability, and compliance within government operations. Significant financial statements, such as the Statement of Net Position and the Statement of Revenues, Expenses, and Changes in Fund Net Position, serve as crucial tools for portraying the financial health and performance of each enterprise fund.

Budgeting is crucial, guiding governments in outlining revenue expectations, expense allocations, and capital expenditures for business-like activities. Revenue recognition centers on accurately recording income earned through the sale of goods or services. On the other hand, expenses get recognized as incurred in delivering those services. Asset and liability accounting ensures the balance sheet reflects the infrastructure, equipment, and financial obligations with enterprise funds.

Conclusion

An enterprise fund is a fund category in governmental accounting. This category includes all revenues and expenses from goods or services provided to the public and is self-sustaining. Enterprise funds are highly crucial as they enhance transparency and accountability. The accounting for this fund occurs through the statement of net position and the statement of revenues, expenses, and changes in fund net position.

Originally Published Here: Enterprise Fund: Definition, Accounting, Importance, Example

Forecasting Implied Volatility with ARIMA Model-Volatility Analysis in Python

Sun, 01 Nov 2020 16:37:38 +0000

In a previous post, we presented theory and a practical example of calculating implied volatility for a given stock option. In this post, we are going to implement a model for forecasting the implied volatility. Specifically, we are going to use the Autoregressive Integrated Moving Average (ARIMA) model to forecast the volatility index VIX. http://tech.harbourfronts.com/trading/forecasting-implied-volatility-arima-model-volatility-analysis-python/

In a previous post, we presented theory and a practical example of calculating implied volatility for a given stock option. In this post, we are going to implement a model for forecasting the implied volatility. Specifically, we are going to use the Autor

Sat, 31 Oct 2020 22:07:18 +0000

In a previous post, we presented theory and a practical example of calculating implied volatility for a given stock option. In this post, we are going to implement a model for forecasting the implied volatility. Specifically, we are going to use the Autoregressive Integrated Moving Average (ARIMA) model to forecast the volatility index, #VIX #volatility #trading #econometrics #python #finance #investing

Can Health Insurance Premium Be Deductible?

Sun, 16 May 2021 16:18:37 +0000

You may have come across the term “Deductible” in reference to medical insurance and wondered what that means. A deductible is a payment made to the insurance company at the time of signing up for an insurance plan. The deductible amount can vary from plan to plan but is usually equal to the monthly premiums you pay. Insurance companies either include the deductible in the cost of your coverage, or they will take it out of the money you pay yourself. It is important to understand how much of the deductible will be before you select a policy.

You may wonder why you have to pay a deductible if the insurance company is not going to cover the entire amount. There are a few different reasons for this. First, the deductible is often a minimum payment required by law. It is really an additional fee you have to pay to get medical coverage. The insurance company will cover the rest.

Second, you may have agreed to a deductible that is less than the total amount of your insurance. If you have taken a policy that has a lower deductible, you may agree to higher deductibles to save money. However, you may also have signed up with a plan with a standard deductible amount. It is important to remember that standard deductions are always adjusted for inflation.

When you start your application, the medical underwriter will ask to see your deductible history. They will look at how much you have already paid in deductibles and whether you have maintained the level you were at when you applied. If you have not made any adjustments in deductibles and your premium has not increased, your rates will stay the same. If you have made adjustments, it will not reduce your policy unless they are below the lowest rate that would apply.

In addition, there are a few other circumstances that may allow you to deduct a portion of your insurance premium. If you are insuring more than one person, such as your spouse and/or children, your premium can be greater than the premiums of the primary policy. If you are insuring your home with the same insurance company, then your insurance company may allow you to deduct a percentage of your home's value if your house is in a particularly good neighborhood. If you have a good driving record and spend a small amount of time outside of your home, your premium can be deducted. There are a few other situations that will allow you to make some deductions before taxes are due.

You will want to check with your agent to see what other ways can the health insurance premium be deducted. You may be surprised at all the options available to you. It is a good idea to gather as much information as possible before you start making decisions. This will help you make the best possible choices for your situation.

Valuation of Warrants-Derivative Pricing in Python

Wed, 19 Aug 2020 19:41:41 +0000

A warrant is a financial derivative instrument that is similar to a regular stock option except that when it is exercised, the company will issue more stocks and sell them to the warrant holder. The valuation of warrants is similar to the valuation of stock options except that the effect of dilution should be considered. http://tech.harbourfronts.com/derivatives/valuation-warrants-derivative-pricing-python/

Which System Has The Lowest Risk of Ruin?

Sat, 31 Dec 2022 19:54:07 +0000

Would you rather choose a trading system that wins small amounts most of the time but when it loses, the loss is big? Or would you rather choose a trading system that loses small amounts most of the time but when it wins, the gain is big? In this blog post, we will examine such systems from the risk of ruin perspective.

The risk of ruin is the probability of an investor’s eventual bankruptcy due to a series of losses that exceed his/her capital. It is essential for any trader to understand their risk of ruin, as it will heavily influence the trading system they ultimately develop.

We will use Monte Carlo simulations to perform our analysis. We examine the following 3 trading systems

System	Percent win	Win	Loss	Expectancy
A	10%	$90	$10	0
B	50%	$18	$18	0
C	90%	$10	$90	0

For each system, we generate 1000 trades randomly. If a trade is a win, then we'll make the amount in the column "Win", and if it's a loss, then we’ll lose the amount in the column "Loss". For example, for system A, if we win, we make $90 and if we lose, we lose $10.

To simplify the analysis, we assume that all 3 systems have zero expectancies. The total winning/losing amounts of each system equal $9000. We start with an initial capital of $1000. The figure below shows the first 100 simulated paths for system A. It's clear that the system has zero expectancy as the terminal wealth equals the starting capital.

To calculate the probability of ruin, we first count the number of paths that go below $0 at any time in their evolutions. We then divide the number of such paths by the number of iterations which is 10000.

The table below summarizes the results.

System	Risk of Ruin
A	10.22%
B	0.18%
C	9.95%

We can see from the results that system B has the lowest probability of ruin. This confirmed that traders should avoid systems that have high win percentages but suffer occasional large losses. Short volatility trading systems are in this category. Traders should also avoid systems that have low percentage win rates.

See More Here: Which System Has The Lowest Risk of Ruin?

Health Insurance Portability And Accountability Act

Wed, 03 Feb 2021 16:44:17 +0000

The Health Insurance Portability and Accountability Act of 1996 was enacted by the 404th United States Congress. It was created to protect individuals who need to change health insurance plans or providers due to changing health conditions or circumstances. It also encourages health insurance providers to allow change, regardless of whether the individual had coverage at the time the change takes effect. The Act is important for people who purchase insurance on their own and for employers who provide insurance to their employees. It encourages insurance companies and providers to cooperate with each other to provide adequate health insurance to all Americans. There are three main provisions under the Act that directly affect the insurance industry and health care providers.

The Act requires that all health insurance contracts are legally enforceable. It also requires all private health information technology systems to maintain certain standards of security. It also requires providers of health insurance to take measures to mitigate against unintentional disclosure of patients' health information to third parties. The Act also encourages companies and providers to work together to promote better patient care. One provision requires health information technology to periodically review security programs and recommend appropriate upgrades.

Both the health insurance portability and accountability act encourages providers and employers to consider electronic patient records (EPRS) a part of their EHBS or preferred provider organizations. Electronic health care records can include more than just date of birth or illness but can include a full medical history, discharge summary, surgical procedures, outpatient medication history, health plan documents, insurance claims, physician communications, and much more. The Health Insurance Portability and Accountability Act also encourage health care providers and carriers to use EHRs to provide accurate and current health care records to patients.

Another provision of the health insurance portability and accountability act requires healthcare providers who do not use EHRs to give notice to patients and provide privacy protection protections. Healthcare providers are also required to update and make available to patients about their privacy security protections at least once each year. This is done through an Affidavit of Privacy Protection. Providers who fail to comply with this requirement may be subjected to fines.

An employer who does not have an EHR will still be required by law to provide employees access to their EHR. Employees may be required to designate a primary health care provider. EHR vendors must provide designated individuals with up-to-date, comprehensive health care reports on their health insurance coverage, including their Medicare and Medicaid coverage. The act also requires EHR vendors to provide notice of changes in policy, and procedures for choosing and purchasing health insurance, as well as how to cancel or change health insurance.

There are numerous regulations regarding health insurance portability and accountability, including definitions of terms, the rules for opting out of EHRs, and the reporting requirements. Each of these areas is the subject of a wide variety of State and Federal rules. Each year, numerous changes to the health insurance portability and accountability act are made in attempts to improve these systems.

Leveraged Exchange Traded Funds

Sat, 18 Dec 2021 19:30:20 +0000

Leveraged exchange traded funds (ETFs) are investment vehicles that can generate high returns. Their returns are typically double or triple the underlying index’s return. The biggest disadvantage of leveraged ETFs is that their return will not match that of the benchmark index. The reason is that the mathematics of compounding prevents the underlying index from outperforming the fund. The following are some ways to calculate the expected return of a leveraged ETF.

A leveraged ETF’s performance may differ from the underlying index. The underlying benchmark, index, or commodity is used to create the fund. The fund uses borrowed money, futures, swaps, and other derivatives to amplify daily price movements. Investing in these ETFs involves a high level of risk and may not be suitable for all investors. If you have extensive market knowledge and a high level of risk, you may want to opt for a traditional index-based investment.

The risk of losing more than what you invest is increased by the fact that the investment in a leveraged ETF is more than double that of the index. However, these losses are relatively rare. Traders can consult a financial advisor for advice on the appropriate leverage ratio for them. Then, they can choose between a traditional index-based ETF and a leveraged one. Once they have a strategy that is suitable for them, they can decide whether to purchase a leveraged ETF.

Leveraged ETFs are not for long-term investors. The risk involved in these investments is exaggerated, so they’re not suitable for those looking to make a steady income. A leveraged ETF’s price can increase or decrease dramatically over time. This is why most new investors are hesitant to invest in these funds. You should take your time to understand how they work and how much risk you’re willing to accept before you invest in a leveraged ETF.

When you invest in a leveraged ETF, you should remember that you’re taking on a lot of risk. A leveraged ETF will most likely own a derivative, which is an instrument with a fixed return tied to a specific underlying asset. A leveraged ETF will also have several derivatives that are linked to the index. The risks are magnified and you need to understand the implications of them before you start investing in them.

A leveraged exchange traded fund uses a derivative to increase its chances of profiting. A leveraged ETF can be used to generate profits. These funds use leverage to increase their investment returns. These ETFs often hold large amounts of cash. If they don’t, you’ll lose a lot of money. If your goal is to maximize your income from a leveraged ETF, make sure you know the risks and how to avoid them.

Apollo's Earnings Climb Amid Epstein-Related Turmoil

Wed, 03 Feb 2021 15:54:00 +0000

Firm officials say ‘the vast majority’ of investors are satisfied with governance changes.

options trading strategies

Modern Portfolio Theory-Searching For the Optimal Portfolio-Portfolio Management in Python

Tue, 26 Jan 2021 17:10:59 +0000

We are going to search for the optimal portfolio, i.e. one that has the highest risk-adjusted return. To do so, we will maximize the portfolio’s Sharpe ratio. The Sharpe Ratio is a financial metric that helps investors determine the return of an investment compared to its risk. The higher the Sharpe Ratio of a portfolio, the better it is in terms of risk-adjusted return. http://tech.harbourfronts.com/modern-portfolio-theory-searching-for-the-optimal-portfolio-portfolio-management-in-python/

House Republicans aim to remove Rep. Ilhan Omar from committees instead of Rep. Marjorie Taylor Greene

Wed, 03 Feb 2021 16:36:11 +0000

Rep. Marjorie Taylor Greene; Rep. Ilhan Omar

Erin Scott-Pool/Getty Images;Kent Nishimura/Los Angeles Times via Getty Images

House Republicans came up with a tit-for-tat response to calls for reprimanding Rep. Marjorie Taylor Greene.
Some in the GOP want Democratic Rep. Ilhan Omar to be punished instead of Greene.
Greene faces calls for committee removal over conspiratorial rhetoric involving violence.
Visit the Business section of Insider for more stories.

While House Democrats prepare to strip Rep. Marjorie Taylor Greene from her committees, some GOP lawmakers have fired back, suggesting that Rep. Ilhan Omar be removed from her panels instead.

Democrats unveiled a measure this week to drop Greene from the House Education and Labor Committee and House Budget Committee over concerns she amplifies conspiracy theories and has endorsed political violence, according to recent reports on her past social media activity.

However, Texas Rep. Brian Babin on Tuesday proposed an amendment to the resolution that would replace Greene's name with Omar's, Forbes reported.

"If the Democrat Majority wants to go down this road, they should start by dealing with their own members who have been at this before and AFTER their election to Congress," Babin tweeted on Tuesday.

A handful of GOPers have backed Babin's resolution, including fellow Texas Rep. Ronny Jackson as well as Reps. Andy Biggs of Arizona and Jody Hice of Georgia, according to Forbes.

Babin's office did not immediately return Insider's request for comment.

Since Democrats control the House majority, Babin's proposal remains a remote outcome that likely won't happen.

Omar, who represents Minnesota's 5th Congressional District and is one of the first Muslim women elected to Congress, faced criticism shortly after she took office in 2019 over her tweets about Israel. Omar said Republicans' support of Israel was "all about the Benjamins," a reference to the financial influence of Jewish lobbying groups that plays into anti-Semitic tropes.

Several Republicans and Democrats condemned her statements as anti-Semitic. Omar apologized and said that her intentions were "never to offend my constituents or Jewish Americans as a whole." The House later passed a resolution to condemn all forms of bigotry, including anti-Semitic tropes.

Following the calls for her to be sanctioned, Omar fired back at Congressional Republicans in a tweet, describing the move as "whataboutism."

—Ilhan Omar (@IlhanMN) February 2, 2021

"Stop whitewashing the actions of the bigoted conspiracy theorists, violent insurrectionists and fascist cult followers of Trump," Omar tweeted.

Greene, a freshman Republican of Georgia, has been at the center of backlash in recent weeks due to her past controversial comments. She has suggested on multiple occasions that mass shootings have been orchestrated to promote gun control. She previously "liked" a Facebook post that claimed the 2018 Parkland school shooting, which killed 17 people was a "false-flag" operation, watchdog group Media Matters revealed last month.

The lawmaker has also been linked to several other baseless theories, including QAnon, Pizzagate, and has falsely claimed that an airplane never hit the Pentagon on 9/11. Greene has a history of making racist and Islamophobic remarks, and CNN reported that she had previously endorsed calls to execute lawmakers, including House Speaker Nancy Pelosi.

In light of the statements, Pelosi urged House Minority Leader Kevin McCarthy to take action against Greene and stop her from serving on her assigned committees. The top Democrat offered the Republican leader 72 hours to act, otherwise, she would move forward to remove Greene from the panels. McCarthy hasn't made any such move to do so as of Wednesday morning. The House Rules Committee is scheduled to consider the resolution at 3 p.m. on Wednesday.

Greene has received backlash from both sides of the aisle. Senate Minority Leader Mitch McConnell this week called her "loony lies and conspiracy theories" a "cancer" to the GOP. Other Republicans, including Sens. Joni Ernst of Iowa and Mitt Romney of Utah, have echoed his remarks.

House leadership bristled at the comparison.

"There's absolutely no analogy to any member on our side of the aisle, period," House Majority Leader Steny Hoyer said Wednesday, according to pool reports. "Any analogy that they try to make is a specious one."

Read the original article on Business Insider

options trading strategies

Valuing American Options Using Monte Carlo Simulation –Derivative Pricing in Python

Thu, 30 Jul 2020 14:57:00 +0000

We are going to present a method for valuing American options using Monte Carlo simulation. This method will allow us to implement more complex option payoffs with greater flexibility, even if the payoffs are path-dependent. Specifically, we use the Least-Squares Method of Longstaff and Schwartz in order to take into account the early exercise feature. The stock price is assumed to follow the Geometrical Brownian Motion. http://tech.harbourfronts.com/derivatives/valuing-american-options-using-monte-carlo-simulation-derivative-pricing-python/

Employee Stock Options-Derivative Pricing in Python

Sun, 02 Aug 2020 22:15:29 +0000

Valuation of Employee Stock Options is different from regular stock options. In this post, we are going to implement the approach proposed by Hull and White. Specifically, we are going to implement the vesting and forfeiture rate features. Other features can also be implemented without difficulty http://tech.harbourfronts.com/derivatives/employee-stock-options-derivative-pricing-python/