Session 3: Case Study Covered Call and Butterfly Strategies B. Butterfly strategy 1. What is the Butterfly strategy? * A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration but three different strike prices to create a range of prices the strategy can profit from. 2. What are its advantages and disadvantages? * Large profit percentage due to low cost involve in executing the position Limited risk
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THE IMPACT OF SCIENCE ON SOCIETY James Burke Jules Bergman Isaac Asimov NASA SP-482 THE IMPACT OF SCIENCE ON SOCIETY James Burke Jules Bergman Isaac Asimov Prepared by Langley Research Center Scientific and Technical Information Branch 1985 National Aeronautics and Space Administration Washington‚ DC Library of Congress Cataloging in PublicationData Burke‚ James‚ 1936The impact of science on society. (NASA SP ; 482) Series of lectures given at a public lecture series sponsored
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Excretion-the final elimination fom the body’s -Drugs may be eliminated from the systemic circulation by different pathways such as through * Urine * Bile * Intestine * Saliva * Alveolar air * Sweat * Milk Kidney – Nephron Glomurelar filtration- Refer to book Order of rxn-it refers to the way in w/c the conc of a drug or reactant influences the rate of chemical rxn 1st order reaction -causes constant percentage of the drug to be lost per unit time
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Barings Bank Case Study 1. Nick Lessons sold numerous short straddles for each long futures contract he bought because he need the cash created by the premiums he received by selling the short straddles. Lesson’s needed large sums of cash to fund his margin calls‚ which forced him to sell disproportionate numbers of short straddles for each long future position he took. 2. The doubling strategy allowed Leeson’s the opportunity to recoup losses suffered ‚ which required him to double his bets
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7.2-3 Show that the running time of QUICKSORT is ‚.n2/ when the array A contains distinct elements and is sorted in decreasing order. QUICKSORT becomes T(n)=T(n-1)+∅(n) T(n)=T(n-1)+∅(┤) =T(n-2)+∅(n-1)+∅(n) =T(n-3)+∅(n-2)+∅(n-1)+∅(n) =∅(n)+∅∑_(k=1)^n▒k =∅(n^2) 7.2-5 Suppose that the splits at every level of quicksort are in the proportion 1˛ to ˛‚ where 0<˛ 1=2 is a constant. Show that the minimum depth of a leaf in the recursion tree is approximately lgn=lg˛ and the maximum depth is approximately
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Multinational Financial Management Curtis Curry American Military University Factors Affecting Transaction Exposure The factors that affect a firm’s degree of transaction exposure in a particular currency are collectively known as currency risk. The designation of currency risk is assigned based on numerous factors including political and economic factors that affect central banking decisions regarding interest rates. Interest rate risk along with inflationary risk is two economic
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Leverage effect and tax effect. - dividends effectively are ongoing and stronger commitment compared with share buyback‚ because‚ according to Lintner managers prefer to increase dividend rather than decreasing them. On the other hand‚ share buyback does not commit the company to future pay-out. In other words‚ repurchasing reserves financial flexibility relative to dividend. In fact‚ the study of …‚ company with higher operating cashflow are likely to increase dividend‚ while company with higher
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Executive Summary We are the consultants that focus on decision making for proposed acquisition‚ sharpen the company competitive edge and facilitate company’s growth in the long run. First Issue: Proposed Sales for Zubinos Zubinos have to make a decision on sell off the shares to Whistle Coffee Bar (WCB) and consider the fairness of the price offered. Major shareholder: Mr Luis Zubinos is planning to sell off his entire family stake to WCB and consider the fairness of the price. Minor shareholder:
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Student Name Tutor Class Date of submission Arbitrage strategy Analysis Arbitrage is one of survival formulas and techniques that many businesses have used in the past in order to take advantage in a broader aspect of the available market opportunities. Arbitrage is an important progression in carrying out of financial markets‚ and in their hypothetical representation (MacKenzie p 349). Arbitrage is a unique strategy as it focuses on utilizing variations by looking for economies of scale obtained
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All Four‚ One - Linear Functions In the last activity‚ we talked about how situations‚ rules‚ x-y tables‚ and graphs all relate to each other and connect. Now‚ we’ll look at how situations‚ rules‚ x-y tables‚ and graphs relate and connect to linear functions. A linear function is a function that‚ if the points from the function were to be put on a graph and connected‚ it would form a straight line. They are used to show a constant rate of change between two variables. A very simple example
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