Happy Thanksgiving
I've been speaking with some Investment Banks in NY.
When they asked how I measure risk/reward, I stated as I believe most do what they want to risk their account vs what reward they expect
This they did not appreciate. They were looking for usage of CAPM, Binomial or Black Scholes models. They were looking for measures of volatility, standard deviation, etc. My question is we are speculators, not hedgers or arbs. How do you all assess risk based on any of these indicators? The next time I "speak" with them I would like to be more prepared. Note these were
fx option traders, not spot. Thanks.
-dstock
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11-24-05, 09:42 AM
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