Microsoft Excel 14.3 Answer Report
Worksheet: [FIN 4513 Bonus Homework.xls]Sheet3
Report Created: 11/26/2013 4:06:38 PM
Result: Solver has converged to the current solution. All constraints are satisfied.
Solver Engine
Engine: GRG Nonlinear
Solution Time:
Final Exam Review Guide Calculations
Final Exam Review Guide Calculations
FIN 4513 Spring 2016
Legend: (In-class), [Additional practice], cfw_End-of-chapter
The Foundations of Risk Management
(3.1 parts d., e.); (3.2 part b.); (3.3); (3.4); [3-A]; [3-B];
Final Exam Review Guide Calculations
Final Exam Review Guide Calculations
FIN 4513 Spring 2016
Legend: (In-class), [Additional practice], cfw_End-of-chapter
The Foundations of Risk Management
(3.1 parts d., e.); (3.2 part b.); (3.3); (3.4); [3-A]; [3-B];
Financial Risk Management 1
Unit II Concepts
ONLY through p. 139
RISK-NEUTRAL VALUATION
Binomial modeling and the no-arbitrage argument
Binomial tree
A useful and popular technique for pricing an option involves constructing a binomial
tree
Charts the
Final Exam Review Guide Concepts FIN 4513 Spring 2016
Legend: (In-class), [Additional practice], cfw_End-of-chapter
1.
2.
3.
4.
The Foundations of Risk Management
What is the efficient frontier? (conceptually and graphically)
Efficient frontier (p. 38)
o
Option terminology
K = Strike price, S = Stock price
While the holder/buyer of an option has the option to exercise, the writer/seller of an option
must perform if and when the option is exercised.
o The holder/buyer is long the option. The writer/seller
Microsoft Excel 14.4 Answer Report
Worksheet: [Homework4-FERM.xlsx]1 Year BBB
Report Created: 12/2/2014 5:20:06 PM
Result: Solver has converged to the current solution. All constraints are satisfied.
Solver Engine
Engine: GRG Nonlinear
Solution Time: 0.51
Microsoft Excel 14.3 Answer Report
Worksheet: [FIN 4513 Homework 4.xlsx]Sheet1
Report Created: 11/18/2013 11:40:48 AM
Result: Solver has converged to the current solution. All constraints are satisfied.
Solver Engine
Engine: GRG Nonlinear
Solution Time: 0
Microsoft Excel 14.4 Answer Report
Worksheet: [FIN 4513 Bonus Homework.xls]Sheet3
Report Created: 12/3/2014 4:06:38 PM
Result: Solver has converged to the current solution. All constraints are satisfied.
Solver Engine
Engine: GRG Nonlinear
Solution Time:
9
C H A P T E R
Mechanics of
Options Markets
We introduced options in Chapter 1. This chapter explains how options markets are
organized, what terminology is used, how the contracts are traded, how margin
requirements are set, and so on. Later chapters wi