Using Bloomberg's OVME screen, estimate the equilibrium price on a selected call and put futures index. For

Question:

Using Bloomberg's OVME screen, estimate the equilibrium price on a selected call and put futures index. For information on how to find options from the SECF and CTM screens and how to upload the futures options,

- To find futures indexes on SECF, click "Index/Stat" from the "Category" dropdown and then click "futr" tab or click "opts." Use OMON on the futures screen to find the futures options.

- Select the options from the selected stock's OMON or CALL screen.

- Load the option: Option Ticker .

- Enter OVME.

- On the OVME screen, determine the Black OPM price using the continuous dividend yield (select Black). Select Bloomberg's implied volatility, historical, or provide your own volatility estimate.

Compare your option values to the market prices (bid, ask, and last). Current option prices are found on OMON, CALL, and the option's GP and DES screens.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: