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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as “an individual who has entered or works under (or‚ where the employment has ceased‚ worked under). The ERA defines ‘contract of employment’ as “a contract of service or apprenticeship‚ whether express or implied‚ and (if expressed) orally or in writing. The variance between the two is Contracts of Service and Contracts for Service. To begin with‚ the difference a Contract of Service is‚ where an employer and an employee have a relationship that is continuous. The employer has a duty of care
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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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SALES CONTRACT No.57/2014 Ho Chi Minh City‚ May 19th‚ 2014 The Seller: Dalat Agriculture and Forestry JSC‚ Vietnam Address: 39 Phu Dong Thien Vuong Street‚ Ward 8‚ Da Lat City‚ Lam Dong‚ Vietnam Telephone: +84-63-656565 Fax: +84-63-665442 Email: info@dalatgap.com Represented by: Mr. Tran Thanh Sang Position: Director The Buyer: Shoei Foods Corporation Address: Shoei Bldg‚ 5-7‚ Akihabara‚ Taito-ku‚Tokyo‚ Japan Telephone: +81-33-2342345 Fax: +81-33-2672634 Email: shoeifoods@Shoeifoods
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Lecture 9 Option versus Stock Investments • Could a call option strategy be preferable to a direct stock purchase? • Suppose you think a stock‚ currently selling for $100‚ will appreciate. • A 6-month call costs $10 (contract size is 100 shares). • You have $10‚000 to invest. • Strategy A: Invest entirely in stock. Buy 100 shares‚ each selling for $100. • Strategy B: Invest entirely in at-the-money call options. Buy 1‚000 calls‚ each selling for $10. (This would require 10 contracts‚ each for 100
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for breach of contract regarding the bees and hives‚ Buyer must establish that there was a valid contract. To establish breach of contract‚ Buyer must show there was an offer and acceptance supported by consideration. Bilateral Contract One in which there are mutual promises between two parties to the contract‚ each party is both a promisor and a promise. Right and duty on each side‚ in which a promise is established on both sides. UCC or Common Law UCC governs contracts under the sale
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"all the world"‚ in which case the offeree is regarded as a member of the general public: Carlill v Carbolic Smoke Ball When an offer is made‚ the term of the proposed contract must be communicated to the offeree: Thornton v Shoe Lane Parking However‚ an offer can be made in general terms‚ leaving the precise terms of the contract to be settled later: Master v Cameron The fact that the word ’offer’ is used is not itself conclusive: B Seppelt & Sons Ltd v Commissioner for Main Roads An offer
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Terms The content of a contract are made up of terms (or ‘clauses’ as they are called in the case of written contracts) which may be express or implied. The express terms are the terms which the parties actually stipulated for themselves when making the contract‚ whether orally or in writing. In addition to the express terms‚ the courts sometimes‚ for a variety of reasons‚ imply certain terms into the contract. Implied terms are terms that are not expressly stated in the contract but are deemed to be
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REAL OPTIONS: STATE OF THE PRACTICE by Alex Triantis‚ University of Maryland‚ and Adam Borison‚ Applied Decision Analysis/ PricewaterhouseCoopers1 n an economic environment characterized by rapid change‚ great uncertainty‚ and the need for flexibility‚ it has become increasingly important for corporate managers to use investment evaluation tools and processes that properly account for both uncertainty and the company’s ability to react to new information. Real options has emerged as an approach
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1.Offer 1. Offer means a proposal by a person in which he makes his willingness to enter into a legally binding contract for some conside¬ration. 2. An offer is made with the object of getting consent of the offeree. 3. An offer can be accepted by the offeree. 4. An offer when accepted becomes an agreement. Invitation to Offer 1. An Invitation to offer means an intention of a person to invite others with a view to enter into an agreement. 2. An invitation to offer on the other hand is made
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