Probability Theory for Financial Applications
The Pre-MFE Program at Baruch College
February 1 - March 29, 2017
The seminar addresses fundamental concepts of (calculus based) undergraduate probability that are
most relevant for a smooth transition to Baru
Tutorial 2 Review of Financial Mathematics
1.
What is meant by the intrinsic value of an asset? What action would you take if you
observed an asset that was selling at less than its intrinsic value?
ANSWER
Intrinsic value is the true value of an asset bas
SolBridge International School of Business
Bachelor of Business Administration (BBA)
2016 Curriculum
Introduction
The SolBridge Bachelor of Business Administration (BBA) program aims to nurture AsianThought leaders of the future. Our mission is to prepar
EC3343, AY2016/17, Sem 2, NUS
Lecture 8
The Mundell-Fleming Model
Liu: [email protected]
1
EC3343, AY2016/17, Sem 2, NUS
Liu: [email protected]
Previously in EC3343
Macroeconomic goals in open economy: internal and
external balances
The effects of fiscal
EC3343, AY2016/17, Sem 2, NUS
Lecture 6
Exchange rates in the long run
Liu: [email protected]
1
EC3343, AY2016/17, Sem 2, NUS
Liu: [email protected]
Previously in EC3343
Interest rate and exchange rate linkage
Exchange rate overshooting
The impossible tr
EC3343, AY2016/17, Sem 2, NUS
Liu: [email protected]
Lecture 5
Money, interest rate, and exchange rate
1
EC3343, AY2016/17, Sem 2, NUS
Liu: [email protected]
2
Previously in EC3343
Uncovered Interest Parity: =
1+
1
It not a formula that gives you a preci
EC3343, AY2016/17, Sem 2, NUS
Lecture 4
Exchange rates in the short run
Liu: [email protected]
1
EC3343, AY2016/17, Sem 2, NUS
Liu: [email protected]
The Progress
Balance of payment
and current account
Exchange rates in the
short- and long run
Equilibrium &
EC3343, AY2016/17, Sem 2, NUS
Lecture 11
International Monetary System
Liu: [email protected]
1
EC3343, AY2016/17, Sem 2, NUS
Liu: [email protected]
Previously in EC3343
Accumulation of foreign reserves
Motivations of building up reserves
Principle of fo
EC3343, AY2016/17, Sem 2, NUS
Liu: [email protected]
Lecture 3
A theory of current account determination
1
EC3343, AY2016/17, Sem 2, NUS
Liu: [email protected]
2
Previously in EC3343
In a two-period model:
1 = 1 + 0
1 = 1 0
Perpetual CA deficit depends on
EC3343, AY2017/17, Sem 2, NUS
Lecture 10
Foreign Reserve
Liu: [email protected]
1
EC3343, AY2017/17, Sem 2, NUS
Liu: [email protected]
Previously in EC3343
Central banks operations
The pros and cons of fixed exchange rates
Capital flight and BOP crisis
EC3343, AY2016/17, Sem 2, NUS
Lecture 7
Macroeconomic policies in an open
economy
Liu: [email protected]
1
EC3343, AY2016/17, Sem 2, NUS
Liu: [email protected]
The Progress
Balance of payment
and current account
Exchange rates in the
short- and long run
Equ
EC3343, AY2016/17, Sem 2, NUS
Liu: [email protected]
Lecture 12
Financial Crisis and Policy Response
1
EC3343, AY2016/17, Sem 2, NUS
Liu: [email protected]
Previously in EC3343
Four stages of the international monetary system:
Gold standard
Interwar peri
EC3343, AY2016/17, Sem 2, NUS
Lecture 2
Current account sustainability
Liu: [email protected]
1
EC3343, AY2016/17, Sem 2, NUS
Learning Outcomes
Two-period model for CA sustainability
Pros and cons of running a CA deficit
Global imbalance and rebalancing
EC3343, AY2016/17, Sem 2, NUS
Liu: [email protected]
Lecture 1
National income and balance of payment (BOP)
1
EC3343, AY2016/17, Sem 2, NUS
Liu: [email protected]
Learning Outcomes
National income accounting
Three ways to interpret current account
Balanc
EC3343, AY2016/17, Sem 2, NUS
EC3343
International Finance
Department of Economics
National University of Singapore
Liu: [email protected]
1
EC3343, AY2016/17, Sem 2, NUS
Liu: [email protected]
The Lecturer
Dr. Liu Zhengning
Personal site: http:/zhengning
Exercise
a. A SG firm sells $20m worth electronic
devices to China.
Singapores CA
b. A SG company buys $100m cars from
Japan.
c. The MAS receives $10m as the interest
of the US Treasury bond it holds.
d. A SG charity group donates $30m to an
African count
EC1101e 1 AY2016/17 Semester 2 Question 1
Problem Set 6
Explain how each of the following events is reflected in the accounting for Singapores GDP
and its expenditure components.
a. Joseph receives $1 million from his father who has sold the family home.
1
EC1101E
Semester 2
Tutorial 3 (Week 5)
1.
TABLE 2 (refers to the lecture slide in TOPIC 5 Elasticity) shows a short-run
elasticity of demand for cigarettes. The same study suggested that the long-run
elasticity of demand for cigarettes ranges from 1.0 t
1
EC1101E
Semester 2
Tutorial 4 (Week 6)
1.
Until recently, you worked for a software development firm at a yearly salary of $35,000.
Now, you decide to open your own business. You quit your job, cash in a $10,000 savings
account (which pays 5 percent int
EC1101e 1 AY2016/17 Semester 2
Question 1
Problem Set 7
Table 1
Category
2013
2014
Full time workers
110
105
Involuntary part time workers
5
10
Voluntary part time workers
3
3
Unemployed
15
11
Discouraged workers
2
6
Other marginally attached workers
2
3
1
EC1101E
Semester 2
Tutorial 2 (Week 4)
Short Answer Questions
1.
Suppose that demand is given by the equation Q D = 500 50P, and QD is quantity
demanded, and P is the price of the good. Supply is described by the equation Q S = 50 +
25P, where QS is qua
1
EC1101E
Semester 2
Tutorial 5 (Week 8)
Short Answer Questions
1. A monopolist is a price maker, but is not entirely free to set the price of its product. Explain.
a. Even though the monopolist can decides on the price, it is still bounded by the
demand
1
EC1101E
Semester 2
Tutorial 1 (Week 3)
1. Explain Adam Smiths metaphor of the invisible hand.
Smith pointed out that the decisions made in markets occurred from the interactions of many
people, each acting in his or her own self-interest. Smith explaine
1
EC1101E
Semester 2
Tutorial 3 (Week 5)
1.
TABLE 2 (refers to the lecture slide in TOPIC 5 Elasticity) shows a short-run
elasticity of demand for cigarettes. The same study suggested that the long-run elasticity of
demand for cigarettes ranges from 1.0 t
1
EC1101E
Semester 2
Tutorial 2 (Week 4)
Short Answer Questions
1.
a)
b)
c)
d)
Suppose that demand is given by the equation Q D = 500 50P, and QD is quantity demanded,
and P is the price of the good. Supply is described by the equation Q S = 50 + 25P, whe
1
EC1101E
Semester 2
Tutorial 5 (Week 8)
Short Answer Questions
1. A monopolist is a price maker, but is not entirely free to set the price of its product. Explain.
a. Even though the monopolist can decides on the price, it is still bounded by the
demand
1
EC1101E
Semester 2
Tutorial 1 (Week 3)
1. Explain Adam Smiths metaphor of the invisible hand.
The invisible market forces that uses demand and supply to arrive at an equilibrium price
and quantity.
2. Discuss whether each statement is a purely Positive
Morning
Everyone!
Looking great today, Dr Ong
sends
Tech Crew
Does Technology really kills jobs?
Luddites
Luddites people who protest
against rapid automations, in fear of
jeopardizing their livelihood
Overall Job Trend
More pronounced
volatility of routi