Slide 1 Review Slide 2 Principle of separation Present discounted value the real investment. (equivalence). Decide whether to undertake it (optimization). Select…
Slide 1 Monty Hall and options Slide 2 Demonstration: Monty Hall A prize is behind one of three doors. Contestant chooses one. Host opens a door that is not the…
Slide 1 Options and risk measurement Slide 2 Definition of a call option A call option is the right but not the obligation to buy 100 shares of the stock at a stated…
Monty Hall and options Demonstration: Monty Hall A prize is behind one of three doors. Contestant chooses one. Host opens a door that is not the chosen door and not the one…