seminars

Posted by on Jan 17, 2019 in Economy | 0 comments

Seminar 6
1. Assume that S0 = $100, r = 1% (continously compounded) and that σ = 20%. What is the corresponding Black-Scholes price for an European call with strike price K = 100 and time to maturity T = 1? What is the price of the corresponding put option? c = 8.4, p = 7.4. 
2. What is the price, under the Black-Scholes model, of a European call option with S0 = 100, K = 110, r = 5% (continuously compounded) , σ = 30% and T = 2? What is the price of the corresponding put option?c=16.99, p=16.52
 3.
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call put parity

Posted by on Jan 14, 2019 in Economy | 0 comments

Options

Kinds of options: Calls and puts are the two simplest forms of option. For this reason they are often referred to as vanilla because of the ubiquity of that flavor. 
There are many, many more kinds of options, some of which will be described and examined later on. Other terms used to describe contracts with some dependence on a more fundamental asset are derivatives or contingent claims.

Vocabulary:
• Premium: The amount paid for the contract initially. How to find this value is the subject
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Untitled 2

Posted by on Jan 11, 2019 in Economy | 0 comments

ch 1

accounting equation (ch 1):

the balance sheet shows the relationship between assets,liabilities,& stockholder’s equity @ a particular date.in equation form,assets = liabilities + stockholder’s equity.this is referred 2 as the basic accounting equation.

financial statements (ch 1) format/content (which accounts belong on each financial statement):

4 types of financial statements:

income statement:

summarizes all revenue & expenses 4 period (month,quarter,or year).if revenues exceed expenses,

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Posted by on Sep 2, 2018 in Economy | 0 comments

International trade: Buy and sell goods from/ to other countries.

External debt: The money a country owes.

Balance of trade: What a country exports and imports. If the country exports more that imports is positive and if they exports minus than imports is negative

SYSTEMS OF AGRICULTURE

– Crop diversity– Single crop (monoculture) : When only one crop(product) is grown(cultivate)– Multiple crop (polyculture) :  When we grow more than one product at the same time.– Water use– Irrigated lands: When a

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aaa

Posted by on May 7, 2018 in Economy | 0 comments

1. Explain the benefits and costs associated with a company’s disclosure of information. 


Answer:  

Supplying information benefits a company by helping it to compete in capital, labor, input, and output markets. A company’s performance hinges on successful business activities and the markets’ awareness of that success.  Economic incentives exist for those companies that disclose reliable accounting information, especially when the company discloses good news about products, processes, management,

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x

Posted by on Jan 15, 2018 in Economy | 0 comments

Elements of the decision prob: Decisions to make; Uncertain events; Value of specific outcomes/ Influence Diagrams: graphical representation of uncertain quantities and decisions that explicitly reveals probabilistic dependence and the flow of information/ Arcs: Decision: information flow& the chronological order. Arcsvalue&chance: conditional and show probabilistic dependence between decision elements. A->B: B is conditioned on the value of A/ Sensitivity analysis: relative impact of

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