Accurate predictions of implied vol significantly improve numerous vol trading, hedging and even collateral pricing applications.
High-accuracy predictions of implied vol result in highly accurate collateral pricing results.
In collateral pricing, a debt can be viewed as an option on equity and priced as such.
Since microstructure risk can be successfully priced, making its measurement a necessity not only in buy-and-hold applications, but also in cases of collateral pricing in lending and derivatives structuring.
Highly persistent in individual securities, the microstructure risk cannot only be measured, it can be used in many daily applications, such as: Buy and hold equity selection Portfolio risk evaluation and management Collateral pricing Derivatives analysis Many more.
Do you push dangerous new drugs on the market knowing that a little collateral damage is the price of making money, just as it is the price of making war?
He will add: "For those who advocate leaving, lost jobs and a dented economy might be collateral damage, or a price worth paying.
Ordinary Pakistanis feel they have paid a high price in collateral damage, between the civilian casualties from unmanned drone attacks and the blowback from terror groups within Pakistan.
And he expressed concern about the collateral damage from higher energy prices on people who drive great distances, businesses that consume a lot of energy and people on fixed incomes.
And if dogma trumps pragmatism and neither side budges, Indiana's most vulnerable citizens could end up paying the price as the collateral damage of a partisan battle".
Jay Yannello, an analyst for UBS Warburg, told Reuters that the fall in Williams' stock price and the "collateral damage" suffered by some of its peers in the energy sector was "unwarranted," even though there were still many unanswered questions concerning Williams Companies financial obligations toward Williams Communications.
