The
MEANS
Variable N
CASEID
age
sex
marst
edu
yschool
yexp
earnings
wages
female
married
17125
17125
17125
17125
17125
17125
17125
17125
17125
17125
17125
Procedure
Mean
Std
Minimum Maximum
44643.58 622253.2
16
89295
41.78575 269.1395
18
64
1.433841 11.94
FIN601 Derivatives
Week 10 March 22
Part 1
Valuing Options The BlackScholes-Merton Model
Chapter 13
By Jean Wills
1
Learning Objectives (0)
1. Be able to compute option prices using the
Black-Scholes-Merton model
2. Understand the basic properties of Bla
Properties of Stock
Options
Chapter 10
1
Notation
c : European call
option price
p : European put
option price
S0 : Stock price
today
K or X : Strike price
T : Life of option
: Volatility of stock
price
C:
American Call
option price
P : American Put opt
Black-Scholes-Merton Model Calculator
Notes: (1) Assumes no interim payouts before the expiration date.
(2) Assumes the put is European.
Current asset price
Exercise price
Days to maturity
Volatility
Interest rate
Type of interest rate
Option type
20.00
2
FIN601 Derivatives
Week 12 April 5
Chapter 17 The Greeks, Hedging
Risk
Chapter 19 Volatility Smiles
By Jean Wills
1
Learning Objectives
Chapter 17: Black-Scholes-Merton The Greeks
and Calibration of the Volatility, Hedging Risk
1. Understand the basic pro
FIN601 Derivatives
Week 11 March 29
Part 2 Interest Rate Options
Chapter 21
By Jean Wills
1
Learning Objectives
1. Be able to compute interest rate option
prices using the Blacks model.
2. Understand the payoffs from an interest rate
cap, floor, or collar
FIN601 Derivatives
Week 9 March 15
Valuing Options The Binomial
Model
Chapter 12
By Jean Wills
1
Learning Objectives
1. Be able to compute option prices using the
binomial model
2. Understand how to adjust the binomial model
for interim dividends/interest
ECN 702 Final (make-up)
(May 10, 2014)
1. Briefly (maximum 3 lines) explain the reasons why you agree or disagree with the following statements.
(a) In the probit model P r(Y = 1|X) = (6 + 5X), if X=1, then the probability that Y = 0
exceeds 45%.
(b) Let
Chapter 2
Problems 2,3,4,6,8,14,15,19,25,26
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
Chapter 2
Questions 2-4
Learning Objective: LO1 The difference between accounting value (or book value) an
Input
Financial Calculator Instruction
for Texas Instruments BA II Plus
Yi Feng
Ryerson University
What you need to do before first use?
1. Check whether your calculator uses the Algebraic Operating System (AOS) or
the Chain system (Chn)
Try to compute 2 + 3 x
Your solution to the question was:
You work for a nuclear research laboratory that is contemplating leasing a diagnostic
scanner (leasing is a very common practice with expensive, high-tech equipment).
The scanner costs $2,800,000 and it qualifies for a 3
Field Corporations New Product Line
Chester Field has been considering a new line of business for some time now. It would
operate in addition to his established business. Mr. Field has developed a new fabric
which is highly durable and completely weather
Chapter 24 Risk Management
Hedging
Risk Management
Forward Contracts
Futures Contracts
Swaps
1
Hedging
What is a cereal company (e.g. Kelloggs) in
the business of doing?
1. Purchasing the inputs to its product, such as wheat
and sugar.
2. Efficiently
Lecture #3 - Leasing (Chapter 22)
Leases and Lease Types
Accounting/Taxes and Leasing
Leasing vs. Buying/Borrowing
Reasons for Leasing
Old Exam Question
Case: Why Buy It When You Can Lease It
11
Leases and Lease Types
Terminology
Lease: rental agr
Lease vs. Buy Analysis
WHY BUY IT WHEN YOU CAN LEASE IT?
Angelo Rossi opened his little upscale Italian restaurant almost 25 years ago in the
heart of New York City. His specialty was the freshly baked bread oozing with homemade garlic
butter and of cours
Midterm Review
#1: Capital Budgeting
Alton Enterprises needs someone to supply it with 175,000 cartons of
machine screws per year to support its manufacturing needs over the next
5 years, and you have decided to bid on the contract. It will cost you
$570
Guidelines for Essay Component (worth 25%)
The essay may be based on articles from The Journal of Forensic Sciences, from well-known
Cases/Case Studies, or from lectures or videos presented in class, and will be evaluated for
Content, Critical Analysis an
Finance Jeopardy!
Dene this!
Present
Value
Future
Value
Annui9es
$100
$100
$100
$100
$200
$200
$200
$200
$300
$300
$300
$300
$400
$400
$400
$400
Dene this!
$100
What is an annuity?
A series of regular cash ows that occur at t
B I N G O
14%
Price/
Sales Ra0o
$48.54
25%
7.8%
Preferred
stock
Current
Price
$20
Perpetuity
$3.37
PE Ra0o
Constant
Growth
Annuity
$4.25
Cannot be
calculated
$17.14
$15
15%
$52.50
11.8%
$55.67
3%
Common
stock
Zero
Growth
Q
CFIN300-Lecture 2
For Class Use Only
Additional Problems for Lecture 2 (Chapter 3)
Equity Multiplier (EM)
Recall: The Equity Multiplier is the total assets a company owns for every $1 invested by Shareholders
You are given the following infor
CFIN300 6J0
Additional Problems for Lecture 3 (Chapter 4)
Sustainable Growth Rate
For Class Use Only
Find the SGR and internal growth rate for a company that has the following information
Asset Turnover
1.2
Profit Margin
15%
Dividend
FIN 401-021
RYERSON UNIVERSITY
Midterm Exam October 28, 2015 Prof. M. Toffanin
Version C
Time allowed: 2 hours
Aids allowed: Closed-book except for an 8 1/2 by 11 crib sheet; a financial calculator is also
allowed
There are 30 multiple choice questions. A
FIN 401-021
RYERSON UNIVERSITY
Midterm Exam October 28, 2015 Prof. M. Toffanin
Version B
Time allowed: 2 hours
Aids allowed: Closed-book except for an 8 1/2 by 11 crib sheet; a financial calculator is also
allowed
There are 30 multiple choice questions. A
FIN 401-021
RYERSON UNIVERSITY
Midterm Exam October 28, 2015 Prof. M. Toffanin
Version A
Time allowed: 2 hours
Aids allowed: Closed-book except for an 8 1/2 by 11 crib sheet; a financial calculator is also
allowed
There are 30 multiple choice questions. A
Dividend Policy
LECTURE #6
CHAPTER #17
Cash Dividends
2
Regular cash dividend
Cash payments made directly to stockholders,
usually each quarter
Extra cash dividend
Indication that the extra amount may not be
repeated in the future
Liquidating dividend
S
Make-Up Assignment
BUS 100
711E
Johnston Thevarajah
500584747
[email protected]
Thursday April 13th 2017
Week 12 Make-Up Assignment
As a full-time student who works part-time to help pay for school, its often difficult to keep
atop of all the work th