OTC Equity Options' Dynamics
OTC Equity Options' Dynamics
Loading saved threads...
user3232 · External communityPost link
External question — Quantitative Finance Stack Exchange
Author: user3232
Original post: https://quant.stackexchange.com/questions/7296
License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
This only applies to options that do not have marketable equivalents since margin can be marked to them.
I've never been able to find this on my goog.
How is margin typically calculated for OTC equity options? I guess mostly, in the contract, how is IV determined?
Also, are the OTC equity option markets liquid enough to provide "constant" bids and asks for "standardized" (whatever that is) contracts?
Does the same go for cash-settled options? Are cash-settled options as liquid as their deliverable counterparts?
Addition
Are the platforms (if they even exist) as well structured as your common broker java platform, or is everything ad hoc, bulletin board, over the phone?
Quote
Report
Post Reply
Checking account access…