GETTING MY PNL TO WORK

You may as well analyse the skewness and kurtosis of your period of time PnL by having 3rd and 4th moments of $Y_t$ respectively. Presumably you might conclude that for 2 collection with identical expectation and variance, you can favor the just one with positive skew or reduced kurtosis, but probably not with regards to the confidence of the marke

In cases like this, when we measure vol in smaller sized 30 min increments, we can easily see it truly is significantly distinct than vol calculated on close to close price ranges. Equally traders purchase the straddle on a 1 vol as an instance, who do you think that could be superior off? The person who hedges various situations each day or the on