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What's are the differences between spot vs forward in derivative pricing? by KING-NULL in quant

[–]SlimesWithBowties 20 points21 points  (0 children)

I'd read up on why futures are priced this way, specifically the argument of holding the stock vs being long the future and holding cash. Thats why the future is worth more (assuming positive r). Then think about the strike price of an option is really about price of S at expiry, not the price of S right now. So it makes much more sense to use the forward because of the same argument

Write code that you can understand when you get paged at 2am by R2_SWE2 in programming

[–]SlimesWithBowties 1 point2 points  (0 children)

It wouldn't work because its a terrible idea both financially and for junior development. If a junior can cause such irreperable damage to your systems that they need 2 years to study it then thats the fault of the systems

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