FINE 448 - Derivatives and Risk Management Summer 2007
Solution to Midterm # 1, 80 minutes Wednesday May 23rd 2007 Prof. Chayawat Ornthanalai
Part A: Short questions (2 points each)
Choose the best answer(s) from the following multiple choice questions. P
Volume Analysis (Part II of IV)
05/21/01 11:10:50 AM PST by Dennis Peterson Volume tells you how many shares are traded and thus provides a measure of buying and selling enthusiasm. Security: QQQ Position: N/A Volume analysis studies price movement in rel
Volume Analysis (Part III of IV)
05/21/01 03:41:02 PM PST by Dennis Peterson Volume tells us how many shares are traded and thus gives us a measure of buying and selling enthusiasm. Security: QQQ Position: N/A You can also see volume and price in action b
Volume Analysis (Part IV of IV)
05/21/01 03:55:43 PM PST by Dennis Peterson Volume tells us how many shares are traded and thus gives us a measure of buying and selling enthusiasm. Security: $compq Position: N/A While it's necessary to be aware of demand
The Only Indicators You'll Ever Need With these five keys to the market's direction, your stock strategy can't stray off course. By Christopher Graja and Elizabeth Ungar Bloomberg Personal Finance January/February 2001 One can never be too rich or too thi
Volume Analysis (Part I of IV)
05/18/01 02:01:00 PM PST by Dennis Peterson Volume tells us how many shares are traded and thus gives us a measure of buying and selling enthusiasm. Security: AOL Position: N/A Suppose someone offered you something you wante
Triangles and the British Pound
10/07/02 12:01:31 PM PST by David Penn Penny-wise and pound-foolish? Not if these triangles have anything to say about it. Security: EURGBP, GBPJPY Position: N/A There has been much talk in "fundamental" circles about the w
Trading Opportunities in Triangles
10/15/02 10:39:34 AM PST Even bearish formations are tradeable as this weekly chart shows via a descending triangle. Security: PANL (Nasdaq) Position: N/A Universal Display Corp. has been a volatile
Another Triangle in Treasuries
10/10/02 07:47:47 AM PST by David Penn A breakout from a symmetrical triangle takes the 10-year Treasury into an ascending triangle. Security: TYZ2, TYZ02 Position: N/A Morgan Stanley chief economist Stephen Roach recently w
Upside Breakouts-A Good Time to Buy?
08/31/00 09:57:31 AM PST by Jayanthi Gopalakrishnan In any given day you are likely to find one stock that has gone up in price on higher than average volume. Is there any way of knowing whether this is a pump and dump
Recognizing The Double Top Reversal Pattern
05/11/00 10:49:50 AM PST by Han Kim How do you tell the difference between a correction and a reversal at the top before it's too late? Being able to recognize the double top pattern could be to your advantage.
THIS IS WHAT WE'LL EXAMINE TODAY
A PATTERN RARELY CHANGES WITHOUT HECTIC SIDEWAYS TRADING
THE PATTERN THAT MOST CLEARLY DEMONSTRATES THE TEMPORARY BALANCE BETWEEN BUYERS AND SELLERS IN THE TRANSI
1. Buy low and sell high This may sound obvious, but since its the only way to earn trading profits, it bears repeating. Also, dont forget that in the futures markets you can d the reverse- sell high and buy low-just as easily. Bulls st
TGEN's Bullish Breakaway Gap
08/11/00 02:31:33 PM PST by David Penn There are gaps and there are breakouts. But a breakaway gap can be something to be bullish about. Security: TGEN Position: N/A Targeted Genetics (TGEN) is a Seattle biotechn
GAP DIRECTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 UP DOWN UP UP UP UP DOWN UP UP DOWN DOWN UP UP UP UP UP UP DOWN UP
OPEN OPEN 1440 1420.5 1447.8 1464 1485.5 1496.5 1451 1473 1477 1464 1461.5 1477.5 1466.5 1425.5 1442 1375 1399 1364.5 1
- Funds were structured to allow equity holders redemptions every month while fund.
- Held illiquid assets with opaque marks
I Was exposed to regular man: to market and margin calls
I Had no term funding - exa
Leverage Ratios For Major Investment Banks
The leverage ratio is a measure of the risktaken by a firm; a higher ratio indicates more risk.
It is calculated as total debt divided by stockholders equity. Each firm's ratio increased between 20032007?
The Banking Crisis:
Whats Happening and Whats It
Going to Cost?
Trinity College Dublin
(Institute for International Integration Studies and Department
1st October 2008
14th Sep 2007
24th Sep 2008
Bank of East As
Options, Futures, and Other Derivatives, 8th Edition,
Copyright John C. Hull 2012
A Simple Binomial Model
A stock price is currently $20
In 3 months it will be either $22 or $18
Stock Price = $22
Stock price = $20
Stock Price =
Stock Option Prices
c : European call
p : European put
S0 : Stock price today
X : Strike price
T : Life of option
: Volatility of stock
C : American Call option
P : American P
Homework 2 Options
Shihui Feng (G4) G1605033X
1. Yes, there is an arbitrage opportunity.
(1) At t=0 (today), long a C(44) and short a C(40). Get 6 1 = 5 of deposit.
(2) At t=1 (maturity), the 5 becomes 5erT = 5e5%1 = 5.26
If the stock price (S) <40, the o
The Bear Stearns Companies Inc.
Samuel L. Molinaro Jr.
Chief Operating Officer & Chief Financial Officer
Credit Suisse Financial Services Forum
February 8, 2008
Strategic Focus: Continue to Grow
and Diversify the Franchise
Fundamental strength and revenue
03/13/02 08:43:13 AM PST by Andrew Hetherington Every now and again you see this style of pattern, an Island Reversal. Although, it is not a major reversal pattern it does have temporary trend implications that can be profitable for tradi
Instructions for the StocksQuest Stock Game
Step #1 This website will take you directly to the starting and login page. ALWAYS start from this page. Bookmark it! http:/www.stocksquest.com Step #2 Follow the Game Tour on the left side of the MyStocks page