The modern binary number system‚ the basis for binary code‚ was discovered by Gottfried Leibniz in 1679 and appears in his article Explication de l’Arithmétique Binaire. The full title is translated into English as the "Explanation of the binary arithmetic"‚ which uses only the characters 1 and 0‚ with some remarks on its usefulness‚ and on the light it throws on the ancient Chinese figures of Fu Xi."[1] (1703). Leibniz’s system uses 0 and 1‚ like the modern binary numeral system. Leibniz encountered
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Chapter 1 to 3 Chapter 9 Revision on Financial Derivatives & Properties of Options Prices • What are financial derivatives? What are their roles in finance? • Give examples of derivatives and draw their profit diagrams. • Name some financial derivatives that are traded in Bursa Malaysia. 2 • Definition A financial instrument that has a value determined by the price of something else Risk management. Derivatives are tools for companies and other users to reduce risks Speculation
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ENEE 245 0103/0104 Lab Report Guidelines Here are a few guidelines that I hope will help you in writing your lab reports. First off‚ here are the statements Dr. Franklin made regarding lab reports in his lecture and lab 1: You will be working with a partner that will be assigned to you at the start of each lab. A joint lab report may be submitted each week. Each one of you is responsible for the entire report. If you have a problem getting in touch with your partner after the lab‚ then you have
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~’c..•• You are interested in stock that will either gain 30% this year or lose 20% this year. The one-year annual effective rate of interest is 10%. The stock is currently selling for $10. (1) (4 points) Compute the price of a European call option on this stock with a strike price of $11.50
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You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $50 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes: 4. To establish a bull money spread with calls‚ you would _______________. A. buy the 55 call and sell the 45 call B. buy the 45 call and buy the 55 call C. buy the 45 call and sell the 55 call D. sell the 45 call
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Introduction: Real option analysis (ROA) is a decision-making structure that basically calculates the value of a future business decision. ROA borrows from financial options theory. A financial option gives the buyer of a financial asset the right‚ but not the obligation‚ to buy a stock or bond‚ for example‚ at a predetermined price at a future date. By analogy‚ a real option is a managerial decision-making tool that calculates the value of a business decision that a manager has an option‚ or right‚ but
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standing at 800. Explain how a put option on the S&P 100 with a strike price of 700 can be used to provide portfolio insurance. 2. “Once we know how to value options on a stock paying a dividend yield‚ we know how to value options on stock indices and currencies.” Explain this statement. 3. Explain how corporations can use range-forward contracts to hedge their foreign exchange risk. 4. Calculate the value of a three-month at-the-money European call option on a stock index when the index
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and has gained some unrealized profits. He sees a bullish economy returning in the near future but would like to ensure that his profits are maintained even through minor volatility for the next six months. He plans to do this through investing in options and is considering several different strategies. 1. Assessment of the Six-Month Outlook for the Market Only four years prior to Michael’s considerations‚ there was a significant market crash lowering the average value of the Toronto Stock Exchange
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According to the article‚ in 2012‚ astronomers have found a binary star system‚ which they named Alpha Centauri‚ that includes a star named Alpha Centauri B being orbited by the planet‚ Alpha Centauri Bb‚ by using the radial velocity method. To clarify on the radial velocity method‚ a planet may possibly be found by seeing the star wobble‚ which may most likely happen due to the gravitational pull of the planet. Astronomers also add that the newly found planet is 4.3 light years away from Earth‚
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1. As an option writer‚ what is the best option to take when you forecast the market to be bullish? Sketch the profit/loss diagram and determine the in the money‚ out of the money and at the money. 2. The call option of Diamond Bhd stock has a striking price of RM30 and a cost of option RM2 per share with one month expiration date. The current market price of share is RM26. If you buy 3 lots (1 lots = 100 shares) of shares‚ calculate the profits or losses at the expiration date for each of the
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