Documents 1 Options on Stock Indices, Currencies, and Futures Chapters 15-16.

Slide 1 1 Options on Stock Indices, Currencies, and Futures Chapters 15-16 Slide 2 2 European Options on Stocks Providing a Dividend Yield We get the same probability distribution…

Documents Computational Finance Lecture 6 Black-Scholes Formula.

Slide 1Computational Finance Lecture 6 Black-Scholes Formula Slide 2 Agenda How to use the B-S formula in Excel; Some possible extensions: Stocks with dividends; Options…

Documents S TOCHASTIC M ODELS L ECTURE 5 P ART II S TOCHASTIC C ALCULUS Nan Chen MSc Program in Financial...

Stochastic Models Lecture 5 Part II Stochastic Calculus Nan Chen MSc Program in Financial Engineering The Chinese University of Hong Kong (Shenzhen) Dec. 9, 2015 1 Outline…

Documents HullFund8eCh12ProblemSolutions.doc

CHAPTER 12 Introduction to Binomial Trees Practice Questions Problem 12.8. Consider the situation in which stock price movements during the life of a European option are…