1. Stochastic Modeling for Valuation and Risk ManagementRoderick Powell, FRMPrincipal, Chicago Risk Advisors, LLC 2. 2Outline of PresentationPreliminariesSimple Random SamplingStratified…

CONTEMPORARY FINANCIAL MANAGEMENT Chapter 17: Managing Domestic Risk INTRODUCTION This chapter examines the characteristics and valuation of options and option-related financing…

Slide 1CHAPTER NINETEEN OPTIONS Slide 2 TYPES OF OPTION CONTRACTS n WHAT IS AN OPTION? Definition: a type of contract between two investors where one grants the other the…

Slide 1 Chapter 19 Options Slide 2 Define options and discuss why they are used. Describe how options work and give some basic strategies. Explain the valuation of options.…

Slide 1 OPTIONS AND THEIR VALUATION CHAPTER 7 Slide 2 LEARNING OBJECTIVES  Explain the meaning of the term option  Describe the types of options  Discuss the implications…

Slide 1 1 Options Global Financial Management Campbell R. Harvey Fuqua School of Business Duke University [email protected] http://www.duke.edu/~charvey Slide 2 2 Overview…

Slide 1 Class 5 Option Contracts Slide 2 Options n A call option is a contract that gives the buyer the right, but not the obligation, to buy the underlying security at a…

Slide 1 20 Financing with Derivatives ©2006 Thomson/South-Western Slide 2 2 Introduction This chapter examines the characteristics and valuation of options and option- related…

D o u g H u g g i n s C H r i s t i a n s C H a l l e r F ixed income Relative value A n A l y s i s A PraCt it ioner ’s gu iDe to the tHeory, tools , And traDes F o r…

Slide 1 Option Pricing Models: Theoretical Justification For all possible values of the underlying asset at expiration: (i)Calculate the option payoff at that price (for…