Homework 4: Financial Derivatives, Chapter 8
Questions: #5, 7, 10, 14, 15, 16, 17 and 22
Investors utilize stock index futures to hedge their stock positions,
speculate on the direction of the market, and to search for arbitrage opportunities
Fin. Deriv. HW 1
Chapter 1: Page 25 (3,4,7,10, 16 & 17)
3. Define arbitrage and the law of one price. What role do they play in the U.S.
market system? What do we call the one price of an asset?
Arbitrage is a transaction in which a partici
Project 1: Options Pricing
Objective: To track and analyze the relationship of option prices to their underlying
factors of influence.
In this report, the company at focus is Tesla Motors, Inc. TSLA trades on the NASDAQ
exchange with a 2/6/