Options Trading: A Comprehensive Guide to Options Strategies and Pricing Models
Minimum and Maximum Values on American Calls
- Minimum: Ca(S0,T,X) ≥ Max(0, S0 – X)
- Maximum: Ca(S0,T,X) ≤ S0
- The maximum value of an American call is the stock price. Hint: the intrinsic value for an in-the-money call is S0 – X. Think of the situation where X = 0. This would imply an intrinsic value of S0.
Lower Bound for European Calls
- Because they can only be exercised at expiration, the lower bound for a European option on stock with no dividend is
- Ce(S0,T,X) ≥ Max[0,S0 – X(1+r)-T].
Accounting Principles and Practices
Accounting Schools of Thought
Contista School (French)
Originated in France and created by Desgranges, this school focuses on a basic accounting system with five accounts: cash, goods, commercial receivables/payables, and outcome. It utilizes the Journal-Mayor procedure and emphasizes the principle of debiting the receiving account and crediting the delivering account.
Personalista School (Italian)
With roots in the work of Marchi and Cerboni, this school is based on the theory of account embodiment.
Read MoreCustomer Relationship Management (CRM): Strategies and Technologies
Customer Relationship Management (CRM)
Phase 5: Evaluating CRM Performance
The final phase of a CRM project involves evaluating its performance, focusing on both project outcomes (e.g., on-time and within budget delivery) and business outcomes (e.g., achieving desired results and CRM success).
Developing, Managing, and Using Customer-Related Databases
Strategic CRM, aimed at acquiring and retaining profitable customers, relies on customer data to identify target customers. Operational CRM, focused on
Read MoreFinancial Analysis and Investment Strategies: A Comprehensive Guide
Financial Statements and Ratio Analysis
Income Statement
The income statement summarizes a company’s revenues and expenses, providing insights into its profitability before and after taxes. Key metrics include:
- Earnings per Share (EPS): Calculated as (Net Income – Preferred Dividends) / Number of Common Shares Outstanding.
Balance Sheet
The balance sheet presents a snapshot of a company’s financial position at a specific point in time, showcasing its assets, liabilities, and shareholders’ equity. The
Read MoreUnderstanding World Hunger: Causes, Impacts, and Solutions
Causes of World Hunger
Lack of Control over the World Food System
The current World Food System is dominated by unregulated global markets, financial speculators, and global monopolies, leading to an unfair and unreliable distribution of food resources.
Poverty
Poverty restricts access to food, even when there is enough to feed everyone. People simply cannot afford to purchase the food they need.
Natural Disasters
Natural disasters can wipe out crops, leading to food shortages and economic hardship for
Read MoreTotal Quality Management: A Comprehensive Guide
Deming (1982) 14 —
Constancy of purposeThe new philosophy– Cease dependence on inspection–End ‘lowest tender’ contracts–Improve every process–Institute training on the job–Institute leadership–Drive out fear–Break down barriers–Eliminate exhortations–Permit pride of workmanship–Encourage education–Top management commitment Ql (1910)
Salvage Sorting= Corrective action =Identify sources of non-conformance=QC (1924)=
Quality manual Performance data Self-inspection Product testing Quality