MidhaFin Blogs

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Triangular Arbitrage: How Currency Markets Quietly Police Their Own Pricing

Economies

Triangular Arbitrage: How Currency Markets Quietly Police Their Own Pricing

Learn how triangular arbitrage works, how to calculate implied cross rates, identify currency mispricing, execute the three-step trade and understand its role in market efficiency.

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The t-Distribution: What Happens When You Don’t Actually Know the Population Variance

Quants

The t-Distribution: What Happens When You Don’t Actually Know the Population Variance

Learn what the t-distribution is, why it is used when population variance is unknown, how degrees of freedom work, and how to calculate confidence intervals and t-tests.

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Bank Rate vs Repo Rate: Two Tools, Two Eras, and Why Only One Actually Moves Markets Today

Economies

Bank Rate vs Repo Rate: Two Tools, Two Eras, and Why Only One Actually Moves Markets Today

Understand the difference between the Bank Rate and repo rate, how each works, why the repo rate became RBI’s primary policy tool, and their role in monetary policy transmission.

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Flotation Costs and the Cost of New Equity: Why Raising Fresh Capital Costs More Than It Looks Like It Should

Equity

Flotation Costs and the Cost of New Equity: Why Raising Fresh Capital Costs More Than It Looks Like It Should

Learn what flotation costs are, how they affect the cost of new equity, the dividend growth model formula, and why adjusting project cash flows is the preferred approach.

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Contango and Backwardation: Why Commodity Futures Don’t Behave Like Stock Futures

Alternative Investments

Contango and Backwardation: Why Commodity Futures Don’t Behave Like Stock Futures

Learn the difference between contango and backwardation, how storage costs and convenience yield shape commodity futures curves, and how roll yield affects investment returns.

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Backward Induction: How the Binomial Model Actually Prices an Option

Derivatives and Hedging

Backward Induction: How the Binomial Model Actually Prices an Option

Learn how backward induction works in the binomial option pricing model, including risk-neutral valuation, replicating portfolios, and American option pricing.

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Collateralized Bond Obligation

Fixed Income

Collateralized Bond Obligation

Learn what a Collateralized Bond Obligation is, how CBO tranches and payment waterfalls work, and understand its risks with simple numerical examples.

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EBITDA vs Operating Income: Two Profit Numbers That Often Get Treated as the Same Thing

Financial Statement Analysis

EBITDA vs Operating Income: Two Profit Numbers That Often Get Treated as the Same Thing

Learn what split ratings mean, why credit rating agencies disagree, and how different bond ratings affect yields, borrowing costs, investor demand and investment-grade eligibility.

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Split Ratings

Fixed Income

Split Ratings

Learn what split ratings mean, why credit rating agencies disagree, and how different bond ratings affect yields, borrowing costs, investor demand and investment-grade eligibility.

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Asian-Style Options

Quants

Asian-Style Options

Learn how Asian-style options work, including average price and average strike options, payoff formulas, examples, uses in commodities and currencies, and differences from European options.

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The One Factor Risk Model: Why Not All Risk in Your Portfolio Gets Rewarded

Quants

The One Factor Risk Model: Why Not All Risk in Your Portfolio Gets Rewarded

Learn what cognitive cost means, how it affects financial decisions, investing, choice overload, decision fatigue, behavioural biases, fintech and CFA preparation.

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FRM Full Form: Your Guide to Financial Risk Management Certification

General

FRM Full Form: Your Guide to Financial Risk Management Certification

Discover the “FRM full form” and its significance in risk management. Learn about FRM course details, duration, fees, and career benefits in global finance.

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Ultimate FRM Coaching: Best Classes & Online Courses

General

Ultimate FRM Coaching: Best Classes & Online Courses

Unlock your potential with top-tier frm coaching! Discover the best frm online classes and coaching programs in India to excel in financial risk management.

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Cognitive Cost: Meaning, Example, and Why It Matters

Portfolio Management

Cognitive Cost: Meaning, Example, and Why It Matters

Learn what cognitive cost means, how it affects financial decisions, investing, choice overload, decision fatigue, behavioural biases, fintech and CFA preparation.

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Direct Sales as a Business Model: What CFA Candidates Should Know When Analyzing These Companies

Equity

Direct Sales as a Business Model: What CFA Candidates Should Know When Analyzing These Companies

Learn how the direct sales business model works, including single-level selling, MLM, financial statement analysis, margins, revenue recognition, growth drivers and regulatory risks.

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The Expectation Operator: What E(X) Is Actually Telling You

Quants

The Expectation Operator: What E(X) Is Actually Telling You

Learn what the expectation operator E(X) means, how expected value is calculated, its linearity properties, portfolio applications, and conditional expectation.

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The Free Cash Flow Hypothesis: Why Too Much Cash Can Actually Hurt Shareholders

Corporate Issuers

The Free Cash Flow Hypothesis: Why Too Much Cash Can Actually Hurt Shareholders

Learn the Free Cash Flow Hypothesis by Michael Jensen, its meaning, agency costs, role in capital structure, examples, advantages, limitations, and relevance for CFA candidates.

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The Fraud Triangle: Meaning, Components, Example, and Why It Matters in Finance

Financial Statement Analysis

The Fraud Triangle: Meaning, Components, Example, and Why It Matters in Finance

Learn the meaning of the Fraud Triangle, its three components, pressure, opportunity and rationalization, with examples, audit relevance, controls and the Fraud Diamond.

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