26 Insurance Operations Chapter Objectives Present the two major areas of insurance: 1) life and health and 2) property and casualty Describe the different types of insurance policies and their sources of funds Describe the main uses of insurance company funds

ByLecture 8. CAPM. CAPM as a Regression. • The CAPM puts structure –i.e., how investors form efficient portfolios- to Markowitz’s (1952) mean-variance optimization theory. • The CAPM assumes only one source of systematic risk: Market Risk. • Systematic risk: (1) Cannot be diversified

ByThe Black-Scholes Model. Randomness matters in nonlinearity . An call option with strike price of 10. Suppose the expected value of a stock at call option’s maturity is 10. If the stock price has 50% chance of ending at 11 and 50% chance of ending at 9, the expected payoff is 0.5.

BySimulation & Black-Scholes Pricing. Simulation. Brokerage Account and Live Data from Exchanges Activate Some Strategies Document Intent, Execute and Resolve Make Some Money, Have Some Fun!. Exchanges. Chicago Board of Trade www.cbot.com Chicago Merchantile Exchange www.cme.com

ByFrom financial options to real options 1. Introduction to real options. Prof. André Farber Solvay Business School ESCP March 10,2000. Valuing a company:. Standard approach: V = PV(Expected Free Cash Flows) Free Cash Flow = CF from operation - Investment Risk adjusted discount rate

By2. VITAL/design. 3. VITAL. VITAL/maturity. 1. VITAL/services. Value-based business-IT ALignment . http://www.vital-project.org. IT Services: A Real Options Thinking Approach. Koen Voermans & Pascal van Eck Value modeling workshop, Tilburg, Jan. 18-19, 2007.

ByFINANCE Boeing 7E7. Professor André Farber Solvay Business School Université Libre de Bruxelles Fall 2004. The Boeing Co (BA) – early 2003. Stock price (June 16, 2003): $36.41 Number of shares: 800m (Yahoo)

ByFrom financial options to real options 1. Introduction to real options. Prof. André Farber Solvay Business School Hanoi April 13, 2000. Valuing a company:. Standard approach: V = PV(Expected Free Cash Flows) Free Cash Flow = CF from operation - Investment Risk adjusted discount rate

By26. Insurance Operations. Chapter Objectives. Present the two major areas of insurance: 1) life and health and 2) property and casualty Describe the different types of insurance policies and their sources of funds Describe the main uses of insurance company funds

ByAdvanced Finance 2006-2007 Risky debt (2). Professor André Farber Solvay Business School Université Libre de Bruxelles. Toward Black Scholes formulas. Value. Increase the number to time steps for a fixed maturity. The probability distribution of the firm value at maturity is lognormal.

ByWelcome to the 12 th McIntire Hedge Tournament. Rules of the Tournament Official source – Do not print! (c) 2002-2011 Stefano Grazioli & Bill Wilhelm. Outline. Tournament Objective Trading Bookkeeping Technology Recommendations. When? Apr 27th, 5:30am-8:30pm (possible delays).

ByLecture-1. Financial Decision Making and the Law of one Price Berk , De Marzo Chapter 3. Valuing Decisions. Competitive Market : A market in which goods can be bought and sold at the same price.

ByReal options in equity partnership. Timothy B. Folta and Kent D. Miller . Presenter: Wen ZHENG. Introduction Theory and Hypothesis Research Design Result Discussion. Research Question.

ByValuation of Cash Flows. Chapter 3.1-3.3 Chapter 4. outline. F inancial costs and benefits The Time Value of Money Present value and future value Valuation of streams of cash flows Valuation of Annuities and Perpetuities Further Examples. Financial Costs and Benefits.

ByCombined Problems. Reminder For the Class. DO NOT put your names on any assignments, midterms or finals, only your ID number. Make sure that the name on the list is the name you are registered with. If you are not sure, look on your students card, that is the name you are registered with.

ByChapter 17 Option Pricing Theory and Firm Valuation. Outline. 17.1 Basic Concepts of Options 17.2 Factors Affecting Option Value 17.3 Determining the Value of Options 17.3.1 Expected Value Estimation 17.3.2 The Black- Scholes Option Pricing Model 17.3.3 Taxation of Options

ByNeutrality of the Resource Super Profits Tax. Forthcoming 2011, Australian Economic Review This presentation June 22, 2011 at the 34th IAEE International Conference, Stockholm, Sweden By Diderik Lund, University of Oslo, Norway. Outline.

ByExotic Options with the Binomial Model. Zhang Zhuozhuo Calum Johnson Waldemar Pietraszkiewicz. Binomial Model. The binomial model is a very useful and popular technique for pricing an option.

ByReal Options Valuation for South African Nuclear Waste Management Using a Fuzzy Mathematical Approach. by Obakeng Montsho, Rhodes University. Energy Postgraduate Conference 2013. Contents. Aim of the Study Fuzzy Set Theory Real Options Theory

ByProperties of Stock Options. Chapter 10. Goals of Chapter 10. Discuss the factors affecting option prices Include the current stock price, strike price, time to maturity, volatility of the stock price, risk-free interest rate, and paid-out dividends

ByView Free interest rate PowerPoint (PPT) presentations online in SlideServe. SlideServe has a very huge collection of Free interest rate PowerPoint presentations. You can view or download Free interest rate presentations for your school assignment or business presentation. Browse for the presentations on every topic that you want.