Unformatted text preview: marginal cost of an additional bag. One Australian example can be found here: http://www.ausbt.com.au/37-pocket-cabin-baggage-coat-evades-7kg-limit Chapter 2 also covers risk. As I stated in the reading guide, the disparity between the possible outcomes of an event is the risk. In the case of stock options, for example, the volatility, or how much the price of option will change over time, is a measure of that options risk. Examine the VIX white paper included below, which describes an indx that attempts to quantify volatility: http://www.cboe.com/micro/vix/vixwhite.pdf...
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This note was uploaded on 09/27/2011 for the course FINACE 6710 taught by Professor Homaifar during the Spring '11 term at Middle Tennessee State University.
- Spring '11