Chapter three
Financial Statements Analysis and
Financial Models
2013 Lecture Notes of Financial Management
Key Concepts and Skills
Know how to standardize financial statements for comparison
purposes()
Know how to compute and interpret important financia

Chapter Five
Net Present Value and Other
Investment Rules
2013 Lecture Notes of Financial Management
Key Concepts and Skills
Be able to compute payback() and
discounted payback () and understand
their shortcomings
Be able to compute the internal rate of r

Chapter Four
Discounted Cash Flow Valuation
2013 Lecture Notes of Financial Management
Key Concepts and Skills
Be able to compute the future value and/or present value
of a single cash flow or series of cash flows/
/
Be able to compute the return on an in

Which calculator should I chose?
Texas Instruments BAII Plus is introduced in the
textbook.
CFAI(AIMR) CFA GARP FRM
HP 12 C HP12C
TI BA II Plus m ( http:/
www.tfra.org/in/front/bin/ptlist.phtml?Category=100258 ).
102 (see
.pdf).
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1
Authors
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Master of Finance, Faculty of Business and Economics, University of Hong Kong
MFIN6003 Module 1
Derivative Securities
Session A: August 25 October 11, 2014
Instructor: Dr. Huiyan Qiu
Room 917, K. K. Leung Building
The University of Hong Kong
Tel: (852) 28

HANG SENG INDEX FUTURES DAILY MARKET REPORT (FINAL)
Hong Kong Exchanges and Clearing Limited and/or its subsidiaries endeavour to ensure the
accuracy and reliability of the information provided, but do not guarantee its accuracy and
reliability and accept

HANG SENG INDEX FUTURES DAILY MARKET REPORT (FINAL)
Hong Kong Exchanges and Clearing Limited and/or its subsidiaries endeavour to ensure the
accuracy and reliability of the information provided, but do not guarantee its accuracy and
reliability and accept

MFIN6003 Derivative Securities
Dr. Huiyan Qiu
End-of-chapter Questions for Practice (with Answers)
Following is a list of selected end-of-chapter questions for practice from McDonalds
Derivatives Markets (3rd edition). For students who do not have a copy

MFIN6003 Derivative Securities
Solution to individual assignment #1
Question 1.
a. A short sale of JKI stock entails borrowing shares of JKI and then selling them,
receiving cash. We sell assets at the bid price. Therefore, initially, we will receive the

MFIN6003 Derivative Securities
Dr. Huiyan Qiu
Answers to practice questions on TVM and no-arbitrage principle
Question 1
1 + EAR = (1 + 5%/2)2 = 1.0506
a) 1 + APR = 1 + EAR = 1.0506 The equivalent APR with annual compounding is 5.06%.
b) (1 + APR/12)12 =

MFIN6003 Derivative Securities
Dr. Huiyan Qiu
TVM and No-Arbitrage Principle: practice questions and problems
Work on the following problems to check your knowledge on the time value of money and
no-arbitrage principle.
1. An interest rate is quoted as 5%

THE UNIVERSITY OF HONG KONG
DEPARTMENT OF STATISTICS AND ACTUARIAL SCIENCE
STAT3303
DERIVATIVES AND RISK MANAGEMENT
December 15, 2010
Time: 9:30 a.m. - 11:30 a.m.
Only approved calculators as announced by the Examinations Secretary can be used
in this exa

Chapter two
Financial Statements and Cash Flow
2013 Lecture Notes of Financial Management
Key Concepts and Skills
Understand the information provided by financial
statements
Differentiate between book and market values
Know the difference between average