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4. Lightning round Give as much examples as you can. 1. How do you borrow stocks? (From whom, etc.) What is the borrow rate? 2.
4. Lightning round Give as much examples as you can. 1. How do you borrow stocks? (From whom, etc.) What is the borrow rate? 2. Give an example of a stock which is currently very expensive to borrow? Can the borrow rate be equal to 300% per year? Explain. 3. Explain the notion of implied cost-of-carry for futures. Give examples with WTI and E-mini S&P contracts. 4. Can you borrow an S&P futures contract? How so? 5. Can you borrow options? Swaps? 6. Are exotic options centrally-cleared? 7. Can you short ETFs? How? 8. How could the term-structure of volatility (as a function of maturity) affect the value of down-and-out barrier options? 9. What is the option-implied forward price of a stock/index/ETF? 10. What is the implied dividend? Describe the concept of implied dividend for hard-to-borrow stocks. 4. Lightning round Give as much examples as you can. 1. How do you borrow stocks? (From whom, etc.) What is the borrow rate? 2. Give an example of a stock which is currently very expensive to borrow? Can the borrow rate be equal to 300% per year? Explain. 3. Explain the notion of implied cost-of-carry for futures. Give examples with WTI and E-mini S&P contracts. 4. Can you borrow an S&P futures contract? How so? 5. Can you borrow options? Swaps? 6. Are exotic options centrally-cleared? 7. Can you short ETFs? How? 8. How could the term-structure of volatility (as a function of maturity) affect the value of down-and-out barrier options? 9. What is the option-implied forward price of a stock/index/ETF? 10. What is the implied dividend? Describe the concept of implied dividend for hard-to-borrow stocks
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