Emerging Markets: Strong Dollar & The Path to Emerged Markets

How do you value pieces of paper? What creates currency? What makes the dollar a reserve currency?

There are several different models used to value currency, including Purchasing Power Parity and the BEER (Behavioral Equilibrium Exchange Rate) model, amongst others. There are several variables that go into those models, most notably conditional expectations, current rates, term premiums, national savings/investment, demographics, and interest rate differentials.

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Futures, Forwards, and SPOTS: How the World Can Trade Pork Bellies Without Ever Touching a Pig

Confession: I normally don’t do much research outside of options and long stock.

Not because the other platforms are some terrible place where people are yelling about pork bellies and soybeans, but simply because I don’t really understand it.

So to make up for admitting my weaknesses in finance on my finance blog, I decided to learn.

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Trading Naked: How to Cover Your Assets

I recently had a conversation with a good friend of mine. Our friendship blossomed when he talked about puts one day in our Applied Investments class. My head whipped around to locate the person that was finally speaking my language, and once we did the options trader secret handshake, we became fast friends.

One of our more recent conversations surrounded the economics of options – He said that basically, if you’re on the sell side of a naked option, your margin requirement (collateral) is going to be pretty high.

But I disagree.

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