CHAPTER 9 THE CAPITAL ASSET PRICING MODEL 9.1 THE CAPITAL ASSET PRICING MODEL 1. The CAPM and its Assumptions The capital asset pricing model (CAPM) is a set of predictions…
1. The Black- ScholesModel 2. Randomness matters in nonlinearity• An call option with strike price of 10.• Suppose the expected value of a stock atcall option’s maturity…
1. Options 2. Learning Objectives 2 3. The Five Pillars 3 Nobel Prize winner and former Univ. of Chicago professor, Merton Miller, published a paper called the “The History…
Slide 1How Algorithms Shape the World Slide 2 The Black-Scholes Algorithm The mathematical equation that caused the banks to crash The Black-Scholes equation was the mathematical…
Slide 1Cycle de vie, emploi et retraite Jean-Olivier HAIRAULT, Professeur à Paris I Panthéon-Sorbonne et à lEcole dEconomie de Paris (EEP) Slide 2 The life-cycle decisions…