With
this question I want to initiate series of reflections about the
construction of a separate, not discussed here before, methodology of
the speculations on derivatives. The practical realization of this
idea, which I will develop in subsequent posts, will be carried out
using the methods and achievements of the modern theory of portfolio
selection. One of the concepts operating within it is known as CAPM, i.e. Capital Asset Pricing Model. The model mentioned here
was originally formulated for equity portfolios, and naturally is
followed by the idea - good or bad - to transplant its prey on the
ground of derivative instruments, including Forex.
