FINA 4110, Fall 2016
Assignment 4 Suggested Solutions
Problem 1
(a) The required probability is the probability of the stock price being above $40 in six
months. Suppose that the stock price in six months is ST . The probability distribution of
ln ST is
0
FINA 4110
SAMPLE MIDTERM
DO NOT OPEN THIS BOOKLET UNTIL INSTRUCTED TO DO SO
You will have 1.5 hours to complete the exam. Be neat and show your work. Showing your work is essential for (partial) credit; except Q1 and Q2, correct answers
without an explana
FINA 4110
Sample Midterm Suggested Solutions
Q3. The price of IBM today is at $50, the continuously compounded interest rate is
1% per annum.
(a) (5 points) What is the futures price on IBM with expiration in 1 year if
you know that IBM will pay a $2 divi
FINA 4110
SAMPLE FINAL
DO NOT OPEN THIS BOOK UNTIL INSTRUCTED TO DO SO
You will have 2 hours to complete the exam. Be neat and show your work. Showing your work is essential for (partial) credit; except Q1 and Q2, correct answers
without an explanation wi
FINA 4110
Sample Final Suggested Solutions
Q3. You are given the following information:
Current stock price is $100 and the stock does not pay dividends
The interest rate is 10% per annum with annual compounding
Prices of one-year calls, written on the
Topic 9: Introduction to Binomial Trees
Taejin Kim
CUHK Business School
1/2 November, 2016
Taejin Kim (CUHK Business School)
Topic 9: Binomial Trees
1/2 November, 2016
1 / 28
Learning Objectives
1
Binomial Model
2
Risk-Neutral Valuation
3
Valuation of Ame
FINA 4110, Fall 2016
Assignment 1 Suggested Solutions
Problem 1
The investment in call options entails higher risks but can lead to higher returns. If the stock
price stays at $94, an investor who buys call options loses $9,400 whereas an investor who buy
FINA6552 Bank and Insurance Capital
Stan Ho
Department of Finance, CUHK
January 29, 2016
Todays Topics
>
Securitisation Process and Participants
>
Legal Structure
>
Financial Structure
>
Credit Enhancement
>
Residential Mortgage Backed Securities
January
Dept. of Finance
Chinese University M.Sc. in Finance
FINA6292 Capital Markets
Tutorial 5 (23 - 29 Jan 2016)
Mr. Sam Pang
M.Sc. Tutor in Finance
Department of Finance, CUHK Business School
The Chinese University of Hong Kong
MSc in Finance Capital Mkts Tut
FINA6552 Bank and Insurance Capital
Stan Ho
Department of Finance, CUHK
February 5, 2016
Todays Topics
>
Credit Default Swap
>
Credit-Linked Note
>
Collateralised Debt Obligation
>
Basket Default Swap
>
Credit Spread Option
>
Interest Rate Swap
>
Cross Cu
FINA6552 Bank and Insurance Capital
Stan Ho
Department of Finance, CUHK
January 15, 2016
Todays Topics
>
Issuer Default Rating
>
Recovery Rating
>
S-REIT Credit Analysis
>
Profit Manipulation
January 16
1
Issuer Default Rating
General Rating Process
>
Ass
Chapter 8
EQUITY SECURITIES
QUALIFICATIONS FOR LISTING
Preliminary
8.01
This Chapter sets out the basic conditions which have to be met as a pre-requisite to
the listing of equity securities. They apply to every method of listing and to both new
applicant
FINA 4110, Fall 2016
Assignment 3 Suggested Solutions
Problem 1
At the end of year 3 the financial institution was due to receive $500,000 ( 05 10 % of $10
million) and pay $450,000 ( 05 9 % of $10 million). The immediate loss is therefore $50,000.
To val
FINA 4110, Fall 2016
Assignment 2 Suggested Solutions
Problem 1
(a) The minimum variance hedge ratio is 0.950.43/0.40=1.02125.
(b) The hedger should take a short position.
(c) The optimal number of contracts with no tailing is 1.0212555,000/5,000=11.23 (o
FINA 4110, Fall 2016
Assignment 1
Due: 27/28 September
1. (Hull, 1.35) The current price of a stock is $94, and three-month European call
options with a strike price of $95 currently sell for $4.70. An investor who feels
that the price of the stock will i
CSC 1520 Computer Principles and C+ Programming
Click to edit Master subtitle style
Introduction
Fall, 2009
11
Outline
1.
Intro. to programming Overview of C+
1.
22
What is a Computer?
A computer is a machine that manipulates data according to a list of i
CSC 1520 Computer Principles and C+ Programming
Introduction
Fall, 2009
1
Outline
1. Intro. to programming 1. Overview of C+
2
What is a Computer?
A computer is a machine that manipulates data according to a list of instructions.
e.g.: Desktop PC, iPhon
CSC 1520 Computer Principles and C+ Programming
Introduction
Fall, 2009
1
Outline
1. Intro. to programming
2. Overview of C+
2
What is a Computer?
A computer is a machine that manipulates data according to a list of instructions.
e.g.: Desktop PC, iPhon
CSC 1520 Computer Principles and C+ Programming
General Information
Fall, 2009
1
Absolutely a No!
No phone conversation! Switch your phone to silence mode!
2
People
Instructor Dr. LAW Yat Chiu ( [email protected] SHB 126 Tel: 26961281 )
3
People
Teach
CSC 1520 Computer Principles and C+ Programming
General Information
Fall, 2009
1
Absolutely a No!
No phone conversation!
Switch your phone to silence mode!
2
People
Instructor Dr. LAW Yat Chiu () [email protected] SHB 126 Tel: 26961281
3
People
Teachi
CSC1520 Computer Principles and C+ Programming, 2009 Fall Department of Computer Science and Engineering, The Chinese University of Hong Kong
Assignment 3: Run-Length Encoding
Due: 23:59:59, 27 Oct 2009 (Tue) Full marks: 100
Introduction
Run-length encodi
CSC1520 Computer Principles and C+ Programming, 2009 Fall Department of Computer Science and Engineering, The Chinese University of Hong Kong
Assignment 2: HKID
Due: 23:59:59, 12 Oct 2009 (Mon) Full marks: 100
Introduction
Every Hong Kong identity card (H
CSC1520 Computer Principles and C+ Programming, 2009 Fall Department of Computer Science and Engineering The Chinese University of Hong Kong
Assignment 1: Typing Exercise
Due: 23:59:59, 28 Sep 2009 (Mon) Full marks: 100
0
Introduction
Type the following p
FINA 4110, Fall 2016
Assignment 2
Due: by 5pm on 17 October
1. (Hull, 3.24) A trader owns 55,000 units of a particular asset and decides to hedge
the value of her position with futures contracts on another related asset. Each
futures contract is on 5,000