IEOR E4707: Financial Engineering: Continuous-Time Models c 2009 by Martin Haugh Fall 2009 Black-Scholes and the Volatility Surface When we studied discrete-time models we used martingale pricing to derive the Black-Scholes formula for European options. It was clear‚ however‚ that we could also have used a replicating strategy argument to derive the formula. In this part of the course‚ we will use the replicating strategy argument in continuous time to derive the Black-Scholes partial differential
Premium Option Options Call option
Black-Scholes Option Pricing Formula In their 1973 paper‚ The Pricing of Options and Corporate Liabilities‚ Fischer Black and Myron Scholes published an option valuation formula that today is known as the Black-Scholes model. It has become the standard method of pricing options. The Black-Scholes model is a tool for equity options pricing. Options traders compare the prevailing option price in the exchange against the theoretical value derived by the Black-Scholes Model in order to determine
Premium Options Option Strike price
Harry Harlow was born on October 31‚ 1905 and died December 6‚ 1981. He was an American Psychologist best known for work on maternal seperation and social isolation experiements on monkeys. Harlow grew up in Fairfield‚ Iowa. He was born as Harry Israel‚ only after receiving his PHD did he change his name to Harry Harlow. He was married twice with 2 children from each marriage. Harry received his Ph.D and his BA from Stanford University. He received numerous awards including the Howard Crosby
Premium Harry Harlow Psychology Abraham Maslow
SIBM Pune | Business Strategy Assignment-1 | Priyanka Pandit‚ Roll no-34131 | | Marketing-A | 2/16/2012 | Environment analysis and SWOT analysis for Aakash tablet and future strategies for Aakash tablet | The vendors for the Aakash tablet are Datawind and the development of the tablet was carried out by Datawind in association with IIT-Jodhpur (Rajasthan). SWOT analysis: Strengths: * It has powerful specifications and great features: * The phone display is very good
Premium Tablet
McDonalds VS Starbucks in‚ E-commerce strategies‚ Service to accommodate the local Markets and Culture McDonalds Architectural Design of Stores According to USA Today article Mc Donald’s new design is turning heads. Before anyone able to get a peek at new store plans in Tampa‚ USA Today had the pleasure of analyzing it. In their opinion it set the tone for other locations currently established now. According to USA Today‚ McDonald’s wanted to go beyond making customer cozy but eliminate the
Premium Starbucks Coffee
Corporate strategy Strategy is defined as the direction and scope of an organization over the long-term‚ which achieves advantage for the organization through its configuration of resources within a challenging environment‚ to meet the needs of markets and to fulfill stakeholder expectations. Johnson and Scholes (1982). Strategy can be used to describe an approach‚ stance‚ or long term. Strategies exist at several levels in any organization - ranging from the overall business (or group of businesses)
Premium Strategic management
rP os t TB0383 Andrew C. Inkpen General Electric’s Corporate Strategy Like the premature obituary of writer Mark Twain‚ reports of the death of the conglomerate are often exaggerated. Diversified companies‚ straddling multiple industries‚ or even just different parts of one large sector‚ remain a dominant‚ if not always fashionable‚ feature of stock markets from the U.S. to continental Europe and Asia. But a new backlash against conglomerates suggests that a more lasting shift in investor preferences
Premium General Electric
Management Control Systems Chapter 1: MANAGEMENT AND CONTROL Management control failures can lead to large financial losses‚ reputation damage‚ and possibly even organizational failure. However‚ adding more controls does not always lead to better control. Some MCSs in common use often stifle initiative‚ creativity‚ and innovation. The term “control‚” as it applies to a management function‚ does not have a universally accepted definition. An old‚ narrow view of an MCS is that of a simple cybernetic
Premium Management Control theory
Overview of the course O i f th Understanding the company Financial statements Paperless‚ sustainable‚ eco‐friendly On UTS online: all the readings are available in pdf format all the lecture slides are available in pdf or pptx format This saves you approx $140 AND you can use it on your iPad/reader/phone/laptop/PC (or print it out)? Does it make you more efficient? Lecture 1 - Intro 2 How to do well in the class: Ensure you can do the “DO LIST” each week The
Premium Balance sheet Income statement Generally Accepted Accounting Principles
Prentice Hall’s Federal Taxation 2013 Corporations‚ 26e (Pope) Chapter C11 S Corporations 1) The S corporation rules were enacted to allow small corporations to enjoy the nontax advantages of the corporate form of business without being subject to the tax disadvantage of double taxation. Answer: TRUE Page Ref.: C:11-2 Objective: 1 2) Up to six generations of a family are considered as one shareholder for purposes of the 100-shareholder limit. Answer: TRUE Page Ref.: C:11-4 Objective: 2
Premium Taxation in the United States Corporation Tax