'European call' diaporamas de présentation

HEDGING FOREIGN CURRENCY RISK: OPTIONS

HEDGING FOREIGN CURRENCY RISK: OPTIONS.

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Principles of option pricing

Principles of option pricing. Option. A contract that gives the holder the right - not the obligation -  to buy (call), or to sell (put) a specified amount of the underlying asset , at a set exchange rate and expiration date. Glossary of terms.

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Properties of Stock Option Prices Chapter 8

Properties of Stock Option Prices Chapter 8.

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Properties of Stock Option Prices Chapter 8

Properties of Stock Option Prices Chapter 8.

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Risk-free lending and borrowing

BOUNDS AND OTHER NO ARBITRAGE CONDITIONS ON OPTIONS PRICES First we review the topics: Risk-free borrowing and lending and Short sales. Risk-free lending and borrowing. Arbitrage: A market situation in which an investor can make a profit with: no equity and no risk.

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Chapter 13

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The Greek Letters

The Greek Letters. ILLUSTRATION. The financial institution has sold for $300,000 a European call option on 100,000 shares of a non-dividend-paying stock. S 0 = 49, K = 50, r = 5%, ?= 20%, T = 20 weeks (0.3846 years), ?=13% The Black-Scholes price of the option is about $240,000.

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7.3 Knock-out Barrier Option

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Option Pricing: The Multi Period Binomial Model

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Chapter Nineteen

Exotic Options. 19. Chapter Nineteen. 19.1 Packages 19.2 Nonstandard American Options 19.3 Forward Start Options 19.4 Compound Options 19.5 Chooser Options 19.6 Barrier Options 19.7 Binary Options . Chapter Outline. 19.8 Lookback Options 19.9 Shout Options 19.10 Asian Options

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Intro to Project 2: Options

Intro to Project 2: Options. What is an Option?.

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Binomial Tree Option Pricing

Binomial Tree Option Pricing. A Three Step Process: Construct a Stock Price Binomial Tree Value the Option at Time of Expiry Value the Option Through Backward Induction. Three Guys, One Method. John Cox, Stephen Ross, and Mark Rubinstein published a paper detailing their method in 1979

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From financial options to real options 2. Financial options

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From financial options to real options 2. Financial options

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From financial options to real options 2. Financial options

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Chapter 10. Basic Properties of Options

Chapter 10. Basic Properties of Options. I. Notation and Assumptions: A . Notation : S : current stock price; K: exercise price of option; T: time to expiration of option; S T : stock price at time T; ? S : volatility of stock returns;

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Properties of Stock Options

Properties of Stock Options. Chapter 9. c : European call option price p : European put option price S 0 : Stock price today K : Strike price T : Life of option ? : Volatility of stock price. C : American Call option price P : American Put option price

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Fi8000 Valuation of Financial Assets

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