This document discusses various approaches to valuing options, including the binomial approach, risk neutral valuation, and Black-Scholes model. The binomial approach uses a tree structure to determine the possible future prices of the underlying asset. Risk neutral valuation assumes investors are indifferent to risk and price options based on expected future values. Black-Scholes provides a closed-form solution and models the option value as a function of stock price, strike price, time to maturity, interest rates, and volatility.
Processing is a programming language that is often used by artists and other creatives. It is built on top of Java and is relatively easy to learn. The presentation was given to our Kids & Technology Meetup in Washington, DC.
The presentation shows the basics of the Processing language and builds to the point where we are able to develop some basic animations.
AV Coloring Book Special Thank you!! It’s my honor to give recognition to the amazing people who jumped on the change to help me put this booklet together. What started off has a random idea for my daughter and a few post on social media these AMAZING group of people jumped at the change to help me bring my idea to life and to show them respect I include there names in here…Bending Lite Productions (Cover Page), Bobo RS,Chad Thomas, Jason Boogie, Jessica Featherston, Joe McGrath, Joris De Jong, Joshua Sabotin, Kevin Roman, Manuel Lupercio, Matthew Choyce, Michael Smith, Nicholas Beachen, Thomas Hoefer, with out them none of this would have come together so quickly.
I am still excepting submission for the project and look forward to creating more versions, I really enjoyed the feedback and the responses I already received from the parents of children’s, I only hope there kids and your kids enjoy this as much as my own little girl did.
Happy Holidays from My Family to Yours
From power points and "financial management: principles and application book"
Pointers to review:
1. Introduction to Financial Management
2. Stocks
3. Financial Ratios (Analysis, etc)
4. Quick Ratio
5. Cash outflows
6. Financial Statements
7. Dividends
8. ROA, ROE
9. Time Value of Money
10. EAR
11. Future value of ordinary annuity
12. Annuity vs Perpetuity
13. Present value of cash flows
14. Bonds
15. Bond's yield to maturity
16. Book value per share
17. Preferred vs Common stock
18. Annual Rate of return
19. Risk & Return
20. Payback period
21. Capital Budgeting
22. NPV
23. Cost of Capital
24. Dividend policy (Ex dividend date)
25. Retained Earnings
Processing is a programming language that is often used by artists and other creatives. It is built on top of Java and is relatively easy to learn. The presentation was given to our Kids & Technology Meetup in Washington, DC.
The presentation shows the basics of the Processing language and builds to the point where we are able to develop some basic animations.
AV Coloring Book Special Thank you!! It’s my honor to give recognition to the amazing people who jumped on the change to help me put this booklet together. What started off has a random idea for my daughter and a few post on social media these AMAZING group of people jumped at the change to help me bring my idea to life and to show them respect I include there names in here…Bending Lite Productions (Cover Page), Bobo RS,Chad Thomas, Jason Boogie, Jessica Featherston, Joe McGrath, Joris De Jong, Joshua Sabotin, Kevin Roman, Manuel Lupercio, Matthew Choyce, Michael Smith, Nicholas Beachen, Thomas Hoefer, with out them none of this would have come together so quickly.
I am still excepting submission for the project and look forward to creating more versions, I really enjoyed the feedback and the responses I already received from the parents of children’s, I only hope there kids and your kids enjoy this as much as my own little girl did.
Happy Holidays from My Family to Yours
From power points and "financial management: principles and application book"
Pointers to review:
1. Introduction to Financial Management
2. Stocks
3. Financial Ratios (Analysis, etc)
4. Quick Ratio
5. Cash outflows
6. Financial Statements
7. Dividends
8. ROA, ROE
9. Time Value of Money
10. EAR
11. Future value of ordinary annuity
12. Annuity vs Perpetuity
13. Present value of cash flows
14. Bonds
15. Bond's yield to maturity
16. Book value per share
17. Preferred vs Common stock
18. Annual Rate of return
19. Risk & Return
20. Payback period
21. Capital Budgeting
22. NPV
23. Cost of Capital
24. Dividend policy (Ex dividend date)
25. Retained Earnings
Isoprofit Method
Corner Point Method
Four Special Cases in LP
Technological Coefficient Change
Right-Hand-Side Value
Sensitivity Analysis
Dual Price/Value
These notes are not made by me. this is made by a different group in my class. these notes were provided for everyone in the class as part of our group project.
I am merely sharing these notes to supplement other students in learning the subject.
These notes are not made by me. this is made by a different group in my class. these notes were provided for everyone in the class as part of our group project.
I am merely sharing these notes to supplement other students in learning the subject.
Isoprofit Method
Corner Point Method
Four Special Cases in LP
Technological Coefficient Change
Right-Hand-Side Value
Sensitivity Analysis
Dual Price/Value
These notes are not made by me. this is made by a different group in my class. these notes were provided for everyone in the class as part of our group project.
I am merely sharing these notes to supplement other students in learning the subject.
These notes are not made by me. this is made by a different group in my class. these notes were provided for everyone in the class as part of our group project.
I am merely sharing these notes to supplement other students in learning the subject.
These are my notes from Ms. Zamora's MARKET1 class in DLSU and from art in advertising talk.
I just thought of sharing it since I put so much effort in making my notes neat. I thought it would be a waste to just throw it away. Plus this would be a good way to help others and me as well incase my MARKET1 notebook gets lost or destroyed over time.
These notes are not made by me. this is made by a different group in my class. these notes were provided for everyone in the class as part of our group project.
I am merely sharing these notes to supplement other students in learning the subject.
These notes are not made by me. this is made by a different group in my class. these notes were provided for everyone in the class as part of our group project.
I am merely sharing these notes to supplement other students in learning the subject.
1. Binomial
Approach
BINOMIAL
TREE
(Binomial
Lattice)
• Value
of
Vd
and
Vu
changes
depending
if
it’s
a
put
option
or
a
call
option
• This
change
in
value
affects
DELTA
(Δ)
Given:
(CALL
OPTION)
EP=
430
MP=
430
Risk
Free
Rate=
.03
/yr
(.015
per
half
a
yr)
2
possible
assumptions
• Price
will
fall
to
322.5
• Price
will
rise
to
573.33
S
=
Share
price
U
=
upward
price
D
=
downward
price
Vu
=
S
–
U
(Call)
Vd
=
S
–
D
(Put)
U
-‐>
Vu
D
-‐>
Vd
S
573.33
-‐>
143.33
322.5-‐>
0
430
2. Given:
(PUT
OPTION)
EP=
430
MP=
430
Risk
Free
Rate=
.03
/yr
(.015
per
half
a
yr)
2
possible
assumptions
• Price
will
fall
to
322.5
• Price
will
rise
to
573.33
1. Replicating
Portfolio
• CALL
OPTION
VALUATION
(C)
i. 𝐶 = ∆𝑆 − 𝐵
ii. ∆ =
!!! !!
!!!
iii. 𝐵 =
∆ ! !!!
!
573.33
-‐>
0
322.5-‐>
107.5
430
3.
• PUT
OPTION
VALATION
(P)
i. 𝑃 = ∆𝑆 − 𝐵 (1 + 𝑟)
ii. ∆ =
!! ! !!
!!!
*
Delta
is
negative
because
you
need
to
sell
the
shares
*
You
exercise
the
put
option
when
MP<EP
that’s
why
(Vu
=
0,
and
not
Vd
=
0)
iii. 𝐵 =
!∆ ! !!!
!
2. Risk
Neutral
• 𝐶/𝑃 =
!
!
• 𝑝 =
!!!!
!! ! !!
Sd
=
downward
change
Su
=
upward
change
• 𝐵 = 𝑝 𝑉! + (1 − 𝑝)(𝑉!)
4. Given:
(CALL
OPTION)
Expected
Rate
of
Return
of
Google
Stock
=
1.5%
Google
Stock
can
either
rise
by
33.33%
to
$573.33
or
fall
by
25%
to
$322.50
𝑝 =
0.15 − (−0.25)
0.3333 – −0.25
= 0.6857
𝐵 = 0.6857 143.33 + 1 − 0.6857 0 = 98.2813
𝐶 =
98.2813
1.015
= 96.8288
Given:
(PUT
OPTION)
Expected
Rate
of
Return
of
Google
Stock
=
1.5%
Google
Stock
can
either
rise
by
33.33%
to
$573.33
or
fall
by
25%
to
$322.50
𝑝 =
0.15 − (−0.25)
0.3333 – −0.25
= 0.6857
𝐵 = 0.6857 0 + 1 − 0.6857 107.5 = 33.78725
𝑃 =
33.78725
1.015
= 10.4623
5. 3. PUT
CALL
PARTY
• Relationship
between
call
and
put
option
for
a
European
Option:
𝑃 = 𝐶 − 𝑆 + 𝑃𝑉 𝑋
P
=
value
of
put
C
=
value
of
call
S
=
stock/
share
price
PV(X)
=
present
value
of
EP
S
=
X
PV(X)
=
S/r
4. Black
Scholes
• ONLY
FOR
EUROPEAN
OPTION
• (what
you
get
–
what
you
give)
𝐵𝑙𝑎𝑐𝑘 𝑆𝑐ℎ𝑜𝑙𝑒 𝑉𝑎𝑙𝑢𝑒 = 𝑆𝑁 𝑑! − 𝐾𝑒!!"
𝑁(𝑑!)
N(d1)
N(d2)
=
probability
K
=
Strike
price
e-‐rt
=
discount
factor
6.
To
get
the
probabilities
(d1
and
d2)
𝑑! = 𝑙𝑛
!
!
! !!
!!
!
!
! !
𝑑! = 𝑙𝑛
!
!
! !!
!!
!
!
! !
𝑜𝑟 𝑑! − 𝜎 𝑡
𝐵𝑙𝑎𝑐𝑘 𝑆𝑐ℎ𝑜𝑙𝑒 𝑉𝑎𝑙𝑢𝑒 = ∆𝑆 − 𝐵
Δ
=
N(d1)
S
=
share
price
B
=
N(d2)
×
PV(EX)
N(d1)
-‐>
look
for
the
value
in
the
table
after
computation.
N(d2)
-‐>
look
for
the
value
in
the
table
after
computation.