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Risk Models and Management - Computing VaR for Options' Portfolio

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Detalhes bibliográficos
Resumo:Increasingly, extreme events are less rarely in financial markets behaviour. To face that changes and prevent bigger catastrophes, Value-at-risk (VaR) has emerged as one of the most powerful and disseminated tools. Summarizing into a single number, the maximum loss of a portfolio over a given time horizon at a given level of confidence can be an extremely important way to control and measure risk. In this paper, several techniques of valuation were focused to calculate the risk of a financial options portfolio. Although that approach, not all techniques were integrated in the models. The main goal of this paper is an attempt to compress in a unique way to value an options portfolio and estimate its value-at-risk, for each specific methodology.
Autores principais:Neves, João Miguel Louçada
Assunto:Value-at-risk Market Risk Volatility Financial Options Forecasting Value-at-risk Risco de Mercado Volatilidade Opções Financeiras Previsão
Ano:2010
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso restrito
Instituição associada:Universidade de Lisboa
Idioma:inglês
Origem:Repositório da Universidade de Lisboa
Descrição
Resumo:Increasingly, extreme events are less rarely in financial markets behaviour. To face that changes and prevent bigger catastrophes, Value-at-risk (VaR) has emerged as one of the most powerful and disseminated tools. Summarizing into a single number, the maximum loss of a portfolio over a given time horizon at a given level of confidence can be an extremely important way to control and measure risk. In this paper, several techniques of valuation were focused to calculate the risk of a financial options portfolio. Although that approach, not all techniques were integrated in the models. The main goal of this paper is an attempt to compress in a unique way to value an options portfolio and estimate its value-at-risk, for each specific methodology.