CHAPTER 15
The Black-Scholes-Merton Model
Practice Questions
Problem 15.1.
What does the BlackScholesMerton stock option pricing model assume about the
probability distribution of the stock price in one year? What does it assume about the
probability dist
1
BUSI 1004G
Financial Accounting for Business Students
Winter 2017
COURSE OUTLINE
Instructor
Lucille Perreault, MBA, CPA, CMA
Office
DT 1002
E-mail
[email protected]
Class Time and
Location
Tuesday and Thursday from 1:05 to 2:25 pm
SA306
Offi
ECON 2009 I Managerial Economics
Department of Economics
Carleton University
Winter 2017
COURSE INFORMATION
Instructor: Carolina Czastkiewicz
Office: B-849 Loeb Building
Phone: 613-520-2600 x 3759
E-mail and website: [email protected]
SOCI1005B: INTRODUCTION TO SOCIOLOGY FOR BACHELOR OF COMMERCE/
SCHOOL OF BUSINESS STUDENTS
WINTER 2017
DEPARTMENT OF SOCIOLOGY AND ANTHROPOLOGY
CARLETON UNIVERSITY
Instructor: Christian Pasiak
Office: Loeb A713 (7th floor, A block)
Office Hours: Tuesdays,
Carleton University
Department of Mathematics and Statistics
MATH 1119C: Linear Algebra with Applications to Business and Economics
Instructor: Aaron Christie
Practice Test # 1
28 September 2015
Surname
First Name
Student #
Instructions:
You have 50 minu
Carleton University
Department of Mathematics and Statistics
MATH 1119C: Linear Algebra with Applications to Business and Economics
Instructor: Aaron Christie
Practice Test # 4
14 November 2015
Surname
First Name
Student #
Instructions:
You have 50 minut
Carleton University
Department of Mathematics and Statistics
MATH 1119C: Linear Algebra with Applications to Business and Economics
Instructor: Aaron Christie
Third Midterm Test Solutions Version B
30 September 2015
Surname
First Name
Student #
Instructio
Carleton University
Department of Mathematics and Statistics
MATH 1119C: Linear Algebra with Applications to Business and Economics
Instructor: Aaron Christie
Third Midterm Test Solutions Version A
30 September 2015
Surname
First Name
Student #
Instructio
MATH1119C Tutorial 1 Worksheet
16 September 2015
1. Is (3, 1, 2) a solution to
your answers.
x1
x1
3x1
the linear system below? Is (26, 9, 0)? Justify
+ x2 + 2x3 = 8
2x2 + 3x3 = 1
7x2 + 4x3 = 10
2. The following two augmented matrices are in reduced ech
Math 1119 C Practice Questions for Text 4
U
Name: _._._._._._._Student ID:
(1) Use Least-Square method to nd the linear line that best ts the given data. points. FtJYMM [a AT A R : AT g
cfw_[ATA | Arts] ) R.R.E.F and the solution is C and D for the line
FYM'Alck:
1
window! Expansrm de-eA: a C 1- 0.1C12+ am Cm e expand arms; [5 W. (maize dig in
0" w cam.
' Cu (21 C
AaJ a : Cm. Cl?- 1 (WA
[as C23 CC: 3521 a 3x3 mom 4 . A :refA )
PM of (1de Math 1119 C Practice Qustions (Chapter 3)
Mam-A whim WW
0 .,A
[1) T
W
1 tYleM D
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cfw_1
Math 1119 C Test 2 Total: 45 marks
. Name: _._._._._._Student ID:
Solve the following qu-tions:
(1) (10 marks) Suppose an economy consists of two sectors: Energy (E), and Agriculture (A).
Sector E sells 30% of its output to A and
MATH 1119 C: Linear Algebra with Business Applications
Fall 2013
Final Review (backward order)
LP: Linear Programming Model and Geometric Approach:
Examples:
1. The Shady-Lane grass company blends two types of seed mixtures. EverGreen and QuickGreen.
Each
MATH 1119
Final Exam Review Questions
1. Find the general solution for the following systems of linear equations in parametric vector form.
3x1 + 2x2 + x3 = 2
a) 4x1 + 2x2 + 2x3 = 8
x1 x2 + x3 = 4
x1 + 4x2 x3 = 12
b) 3x1 + 8x2 2x3 = 4
c) x1 + x2 + 3x3 = 1
1.6 Linear Independence
Section 1.7 in Textbook.
Denition (Linear Independence and Dependence). A set of vectors cfw_171,173, . . . 171: in IR" is
said to be linearly independent (LI) if the vector equation on a +a2 17; + . . . + ak 171226 has
only the
Name 6 0L. Ll T l ON 3 Student Number TA / 2
Name Student Number TA /2
Name Student Number , TA /2
Name Student Number TA / 2
MATH 1119 E - TUTORIAL 1
Each tutorial is worth up to 2% of your grade. It will be graded as: 0 for unsatisfactory or absent, 1 f
CHAPTER 7
Swaps
Practice Questions
Problem 7.1.
Companies A and B have been offered the following rates per annum on a $20 million fiveyear loan:
Company A
Company B
Fixed Rate
5.0%
6.4%
Floating Rate
LIBOR+0.1%
LIBOR+0.6%
Company A requires a floating-ra
CHAPTER 11
Properties of Stock Options
Practice Questions
Problem 11.1.
List the six factors affecting stock option prices.
The six factors affecting stock option prices are the stock price, strike price, risk-free interest
rate, volatility, time to matur
CHAPTER 13
Binomial Trees
Practice Questions
Problem 13.1.
A stock price is currently $40. It is known that at the end of one month it will be either $42 or
$38. The risk-free interest rate is 8% per annum with continuous compounding. What is the
value of
Introduction to Binomial Trees
Chapter 13
1
A Simple Binomial Model
A stock price is currently $20
In three months it will be either $22 or $18
Stock Price = $22
Stock price = $20
Stock Price = $18
2
A Call Option
A 3-month call option on the stock has
Determination of Forward and
Futures Prices
Chapter 5
1
Consumption vs Investment Assets
Investment assets are assets held by
significant numbers of people purely for
investment purposes (Examples: gold, silver)
Consumption assets are assets held primar
Swaps
Chapter 7
1
Nature of Swaps
A swap is an agreement to exchange cash
flows at specified future times according to
certain specified rules
Plain-vanilla interest rate swap example:
An agreement by Microsoft to receive 6month LIBOR & pay a fixed rate
Mechanics of Futures
Markets
Chapter 2
1
Futures Contracts
(excellent educational videos on
CME Group Education website)
Available on a wide range of underlyings
Exchange traded
Specifications need to be defined:
What can be delivered,
Where it can b
Hedging Strategies Using Futures
Chapter 3
1
Long Hedges
A long futures hedge is appropriate when you know
you will purchase an asset in the future and want to
lock in the price
Example: It is May 15. A copper fabricator will need
100,000 pounds of copp
Welcome to BUSI 3512
Derivatives
Course provides an overview of the main types of derivatives and
derivative markets
Grading system
In-class quizzes (3 best of 4) - 20%
Options simulation 10%
Midterm (in-class) 25-30%
Final exam-40-45%
Text:
John