write a research paper of minimum of 8 pages double-spaced,
The paper should have a title page with the following information:
Name of the University
Course Title and Number
Name of Instructor
Title of the Paper
Name of the Student
Date
1
The paper should

FIN674
June 17, 2016
Homework 3
Chapter 13: Questions 2 & 5
2. Identify the cash flows available to an investor in stock. How reliably can these cash flows be
estimated? Compare the problem of estimating stock cash flows to estimating bond cash flows.
Whi

FIN674
June 12, 2016
HMWK 2
Chapter 7: Questions 4 & 10
4.How do standard accounting principals help financial market work more efficiently?
Having standardized accounting principals makes information about a company reliable and
available. This helps com

HMWK 1
FIN674
Chapter 1: Question 11
The basic activities of banks are to be financial intermediaries accepting deposits and making
loans.
Chapter 2: Question 2
Yes, I am better off by taking the loan. If the loan amount is 5,000 and my interest is 4,500(

OPTIONS PRICING SUMMARY Instructor Notes
Simple Option Pricing Model where:
C=S-X
P=XS
C: Call Option
P: Put Option
S: Stock Price
X: Exercise or Strike Price
Under the Simple Model, C (Call Option) is in the money or
has positive intrinsic value when S >

FORMULAS
Black Scholes Options Pricing Model where C = value of call
option; P = value of put option; N() = cumulative normal
density function; S = market price of stock on date call
option is written; X = call options exercise or strike price; =
standard

CAPITAL MARKET THEORY [Single versus Multi-factor models]
Calculating the Required Rate of Return
Business valuation utilizes capital market theory with single
factor (CAPM) and multi-factor (APT) models for estimating
the required rate of return used to

BLACK SCHOLES OPTIONS PRICING MODEL Sample Problem
The first problem is a demonstration on how to plug in the numbers and
calculate the value of a Call option. The second problem is a demonstration
on how to calculate the value of a Put option. Refer to F