1. Principles of Financial Economics Stephen F. LeRoy University of California, Santa Barbara and Jan Werner University of Minnesota @ March 10, 2000, Stephen F. LeRoy and…
1. � � 1. Consider a 3-period model with t = 0, 1, 2, 3. There are a stock and a risk-free asset. The initial stock price is $4 and the stock price doubles with probability…
THE FINANCE OF INNOVATION : BINOMIAL TREES, GAME THEORY & R&D VALUATION Prof.Stephen Ong BSc(Hons)Econs (LSE), MBA (Bradford) Visiting Professor, Shenzhen University…
Risk-neutral Valuation: A Gentle Introduction (1) Joseph Tham Abstract Risk-neutral valuation is simple, elegant and central in option pricing theory. However, in teaching…
Slide 1 An Introduction to the Market Price of Interest Rate Risk Kevin C. Ahlgrim, ASA, MAAA, PhD Illinois State University Actuarial Science & Financial Mathematics…
Real Options The Right to do Something Real Introduction The classical DCF valuation method involves a comparison between the cost of an investment project and the present…