Times Mirror PEPS
Harvard Business School Publications
April 19, 1996
Peter Tufano, Cameron Poetzscher
Description
Times Mirror Co. (TMC) owns a substantial block of Netscape common stock purchased prior
to Netscape's IPO, on which it has substantial unre
How To Register for
MyMarketingLab
Professor Jackie Simkin
University of Ontario Institute of Technology
January 2016
You Need 3
Things to
Register
1) A Valid Email Address (One you check often. We
suggest using your UOIT email address).
2) An Access Co
Question Paylater Strategy
A gold mining company will sell the next years production in exactly 1 year from
today at whatever the gold price is that day. Therefore, it is considering three
strategies with the following characteristics:
- Strategy 1: Do no
Options Strategies
Trading Strategies
Involving Options
In this chapter, we will discuss different investment
strategies involving options
We will consider only options on stocks, other underlying assets
such as currencies, stock indices and futures con
Assumptions
Properties of Stock
Option Prices
In order to derive options prices, we must make some
assumptions that hold for some large market
participants
There are no transaction costs
All the net trading profits are subject to the same tax
rate
Bor
Types of Options
Mechanics of Options
Markets
Most exchanges-traded options are on stocks, indices,
currencies, futures contracts and commodities
There are two classes of options
A call option is an option (a right) to buy the underlying asset
A put o
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
B
C
D
E
F
G
H
Standard Deviations
Sigma(X)
Sigma(Y)
2.56
2.89
Formulas
=STDEV(B6:B16)
=STDEV(D6:D16)
-0.17
=CORREL(B6:B16;D6:D16)
Computation of the Standard Deviation
and the Correlation using Excel
Data
Metallgesellschaft AG: A Case Study
Page 1 of 7
Metallgesellschaft AG: A Case Study
By John Digenan, Dan Felson, Robert Kelly and Ann Wiemert
In December, 1993, Metallgescellschaft AG revealed publicly that its
"Energy Group" was responsible for losses of
Long & Short Hedges
Hedging Strategies
Using Futures
A short futures hedge is appropriate when you know
you will sell an asset in the future and want to lock in the
price
By taking a short futures position, the hedger offsets the
risk incurred from the
Short Selling
Determination of Forward
and Futures Prices
Short selling involves selling securities you do not
own
Your broker borrows the securities from another
client and sells them in the market in the usual
way
At some stage you must buy the secur
Question
A stock is expected to pay a dividend yield (per annum continuously compounded).
The stock spot price is $50, and the risk-free rate is 6% per annum continuously
compounded. The 6-month forward price is $51.30.
(a) What is the theoretical dividen
Roy Disney Reaps $125 Million In a Novel Stock-Sale Package
Randall Smith and Bruce Orwall. Wall Street Journal. (Eastern edition). New York,
N.Y.: Aug 21, 2003. pg. B.6
Full Text
Copyright (c) 2003, Dow Jones & Company, Inc.
Walt Disney Co. Vice Chairman
ADMS 4503 Derivative Securities
Nabil Tahani, Ph.D., York University
Technical note on the risk-neutral probability in the Binomial Tree (CRR, 1979)
Let us consider a one-time step binomial tree, where the up and down movements
are respectively u and d, t
UOIT
BUSI 1700 Winter 2016
Introduction to Entrepreneurship
Assignment #1
Please develop your own business idea using Blue Ocean Strategy theory. You
may choose one partner and work together (a joint submission of one
assignment). However, if you want to
Marketing in the IT Sector, Winter 2016
MARKETING PLAN
Each group, consisting of 5 & 6 students, will be required to submit a written marketing plan. In order
to receive a grade, each student is required to participate in all stages of the marketing plan.
Marketing in the IT Sector Winter 2016
Marketing Lab Project Marketing Research
For this project all students must attend the marketing lab with their assigned groups. You
can register for a time slot on blackboard. Attendance to the lab is mandatory in o
3520-8: Last updated on October 26, 2014
1-13
Lecture 8: Income or Loss from a Business and Introduction to GST/HST
Coverage
Use the lecture notes for studying; for parts that you think you really need more info please
search for the relevant materials in
A One-Step Binomial Model
Introduction to Binomial
Trees
Consider a 3-month European call option with a strike
price of $21
Today, we know what would the option price be in 3
months
It is simply equal to the call payoff !
Chapters 12 & 20
What would t
Kenneth Bueno 9/1/16
What factors affect preferences for physical activity? There are many reasons as to why people choose physical activities based on age, gender, and more. However, there is one aspect that ties in as another factor when choosing phys
European Options on Stocks
Providing a Dividend Yield
Options on Other Assets
and Hedging
We get the same probability distribution for the
stock price at time T in each of the following
cases:
Chapters 16, 17 & 18
The stock starts at price S0 and provid
Concepts Underlying
Black-Scholes-Merton
The Black-Scholes-Merton
Model
The option price and the stock price depend on the same
underlying source of uncertainty
Black-Scholes-Merton model can be seen as the limit of
the Binomial model when the time-step
DerivaGem - Version 2.00
For Excel 2000 and more recent versions of Excel
This is the Options Calculator Software that has been designed to
accompany John Hull's texts:
"Options, Futures and Other Derivatives" 7/E
"Fundamentals of Futures and Options Mark
Question
Assume the following currencies forwards quotes and risk-free rates in Canada and
in France:
1-year US/Euro
1-year US/CAD
rFRA
rCAD
1.2355
0.8665
2.5%
4%
(a) What are the 1-year theoretical CAD/Euro forward rate and the CAD/Euro spot
rate?
(b) Ac
Arbitrage - Forward contract on a coupon-bearing Bond
Under different strategies
Strategy 1
Spot price
Forward price
T
900
930
1
Coupon
r1
r2
Arbitrage
Borrow for 6 months
Borrow for 1 year
Buy the Bond
Short 1 forward
Cpn
Cpn
Pay back the loan
Total
Stra
ADMS4503 3.0
Quiz
Name: _
ID: _
Section: _
AK/ADMS 4503 3.0 Derivative Securities
Fall 2012
Quiz A - Solution
TVM Questions
Question 1
The interest rate is 4% semi-annually compounded. What price are you willing to pay for
a 5-year annuity that pays $500
ADMS4503 Derivative Securities
Fall 2012
YORK UNIVERSITY
Faculty of Liberal Arts and Professional Studies
School of Administrative Studies
AP/ADMS 4503.03 DERIVATIVE SECURITIES
MIDTERM EXAMINATION
Solution
Sunday, October 14, 2012
12:00 - 2:00 p.m.
Prof.
ADMS4503 Derivative Securities
Sample 2
YORK UNIVERSITY
Atkinson School of Administrative Studies
DERIVATIVE SECURITIES
AK/ADMS 4503.03
FINAL EXAMINATION
Solution
Nabil Tahani
INSTRUCTIONS
1. Allowed material: Textbook, lectures notes and a calculator.
2.
ADMS4503 Derivative Securities
Sample 2
YORK UNIVERSITY
Atkinson School of Administrative Studies
DERIVATIVE SECURITIES
AK/ADMS 4503.03
FINAL EXAMINATION
Nabil Tahani
INSTRUCTIONS
1. Allowed material: Textbook, lectures notes and a calculator.
2. This exa
ADMS4503 Derivatives Securities
Sample 1
YORK UNIVERSITY
Atkinson Faculty of Liberal and Professional Studies
DERIVATIVES AND FIXED INCOME SECURITIES
AK/ADMS 4503.03
FINAL EXAMINATION
Solution
Nabil Tahani
INSTRUCTIONS
1. Allowed material: Textbook, lectu