Speaking on the issue of Bitcoin which is registering record heights worldwide, Reddy said that there has to be a sovereign behind fiat money as only the sovereign can take unlimited risk
and has the capacity to withstand strain.
So-called 'zero-cost' or 'zero-premium' options, which sound attractive in terms of initial upfront cost (there isn't one), should be treated with extreme caution-- zero-cost usually means unlimited risk
. When you buy an option from a bank, you are literally asking that bank to transfer a risk you are facing onto their own books -- the premium is the price they charge for doing so.
Long straddle provides opportunities for unlimited rewards and limited risk, whereas short straddle offers limited rewards and unlimited risk
. Unlike in the previously covered long call, bull call spread and covered call strategies, straddles have two break-even (no profit, no loss) points.
Saliba discusses which strategy to employ, the nuances of each, how to manage the position, when to exit, and how to use spread strategies that offer limited or unlimited risk
. The text includes exercises, chapter quizzes, and a final exam--with answer keys--to reinforce the concepts presented in the book.
"What insurers know is they cannot assume an unlimited risk
. All the modeling in the world won't help," Hartwig says.
Rent-a-captives, unlike captives, can't take unlimited risk
, regardless of how improbable that risk might be, since they must ensure each client receives its promised return.
That is exposing men to unlimited risks
without monitoring them for benefit.
By committing Europe's biggest economy - and already its effective paymaster - to the ESM, parliament was essentially exposing Germany's public finances to unlimited risks
should one eurozone country after another topple under the debt crisis, they argued.