Short Review
Instead of memorizing the formulas, it is important that you also comprehend
the basic economic meanings associated with them. Conceptual understanding
is key to success. You are not required to derive these formulas in the exam.
Formulas to
Derivatives Assignment 3
The assignment should be done in groups of three to five people. Each group should
hand in a hard copy of the assignment solutions during the Wedn esday Lecture
in M1.01 of Week 6 (3 December). Note that hand-written or email-sent
Derivatives
(Master course, ABS)
Resit Exam, 3 February 2014
Your Name:
Student Number:
Signature:
Part I (10 questions, 4 points each; circle one and only on choice.
No penalty for the wrong choice.)
1. Suppose yesterday you sold a March euro/dollar futu
Derivatives Assignment 2
The assignment should be done in groups of three to five people. Each group should
hand in a hard copy of the assignment solutions during the Wedn esday Lecture
in M1.01 of Week 4 (19 November). Note that hand-written or email-sen
Tutorial Week 4
Problem 14.1.
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 continuously compounded
rate of return on the stock during th