Eco

Posted by on Mar 25, 2019 in Economy | 0 comments

1. Refer to Figure 1. From the figure it is apparent that 
a. New Zealand will experience a shortage of wool if trade is not allowed. b. New Zealand will experience a surplus of wool if trade is not allowed. c. New Zealand has a comparative advantage in producing wool, relative to the rest of the world. d. foreign countries have a comparative advantage in producing wool, relative to New Zealand. (C)

2. Refer to the figure above. When trade in wool is allowed, consumer surplus in New Zealand a. increases
Read More

Untitled 3

Posted by on Feb 6, 2019 in Economy | 0 comments

ch 1

accounting equation (ch 1):

the balance sheet shows the relationship between assets, liabilities, & stockholder’s equity at a particular date. in equation form, assets = liabilities + stockholder’s equity. this is referred to 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 for period (month, quarter, or year). if revenues

Read More

business ethics

Posted by on Feb 6, 2019 in Economy | 0 comments

What is business?

The combination of heterogeneous forms of capital to create and capture value

It involves experimentation to find novel combinations of valuable resources

It involves collaboration because work is often a matter of team production 

What is ethics? 

The search for and pursuit of a worthy goal 

All action is goal directed, ethics seeks a worthwhile goal 

Includes but is not reducible to a code of rules or set of principles

What is business ethics?

Ethics in the context of contemporary

Read More

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.
Read More

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
Read More

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,

Read More