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Old 02-23-2019, 01:32 PM
Frustrated & Unmotivated Frustrated & Unmotivated is offline
CAS SOA Non-Actuary
Join Date: Jun 2015
Posts: 19
Default these damn signs are confusing me...

I'm just doing questions again re arbitrage etc.

+ means positive cashflow, right? and - means negative, so selling somehting means you get the cash so it's a + (right?) and borrowing means you also get the cash, so also a +, (right?)

but then in the replicating portfolio models, - means borrowing? and + means buying?

I keep messing up these questions and can't get this straight. I can do the math, but the verbally interpretting is where I get confused.

Sorry for such a stupid question...
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