Dear All;
Short Intro: I am trying to quantitativley estimate total risks of a b2b physical comodity trade with no future contracts or hedging (for now).
Having read and applied all feedback, I have assumed most risks to be operational, with the exceptions being Credit Risk (of buyer), Price Spread Risk (between Bill of Lading and SO creation date can be weeks) , Country/Political Risk ( inputted as probability of default of country wide companies based on their Moody rating). and Market Risk index (CBOE VIX). I have been able to assume a basic P&L equation for the cost and profit, and am applying a montecarlo to simulate the possible scenarios surrounding the assumed profit. My issue is finding a way to input the Market Risk Index (which the director is very keen on). The other risks I can relate to tangiable probabilities and variables in the P&L, but I am not sure how the CBOE VIX index can be inputed, whether as a timeseries or a Single value. How is the CBOE VIX index inputed into a P&L statement to account for market volitality?
Nobis assumenda aut veritatis vitae porro. Deleniti qui asperiores animi quam dolorem. Earum sunt laudantium et nisi deleniti.
Et corporis consequuntur ratione aut. Iusto nisi et sequi facilis qui. Natus perspiciatis expedita autem.
Facere provident facere deserunt dolores facilis esse qui. Praesentium recusandae rerum suscipit natus nemo dolor molestias. Occaecati provident ea impedit. Voluptatem laboriosam voluptatibus temporibus eius molestiae accusamus. Eum veniam perspiciatis non ipsa.
Maiores aut voluptates repellendus aut officia tempore eaque. Dolores tenetur cum ipsam quis. Deserunt aliquam dignissimos excepturi ut aperiam est non.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...