Given the market’s day-today volatility, it’s no wonder your clients are upset. Perhaps you may even feel atypically confused.
The price of an option hinges on an assumption of volatility, which measures how much the stock price is expected to vary from its current price — a position that is most clearly defined in the cost of an options straddle.
80% of Canadian investment managers forecast positive returns for S&P/TSX in 2012
Key risk to improved global market sentiment is Europe
The TSX is trading more than 1,800 points, or 13.7%, below where it sat at the start of the year
Appeal growing for U.S. and emerging market equities
Institutions have embraced commodities and real estate in response to weaker returns. Retail investors may need to follow suit
Managers must adapt their stockpicking process to a top-down view in volatile market conditions