When D > K * (1 - r ^ (T-t)), which essentially means, dividends are greater than the interest you would earn on the money if you save it till the end.
Thanks. Do you remember what is the correct answer? Early excercise?
When D > K * (1 - r ^ (T-t)), which essentially means, dividends are greater than the interest you would earn on the money if you save it till the end.
it was mentioned downside volatility as far as i rememberthe question that include long straddle and butterfly.....was it about high volatility or low volatility?
I remebr that about big change in price so we are talk about upside volatility? really I am confused.it was mentioned downside volatility as far as i remember
Yes, I think that is right answer. It is Black approximation. Answer should be B)Thanks. Do you remember what is the correct answer? Early excercise?
may u remind me more about this question?Yes, I think that is right answer. It is Black approximation. Answer should be B)
Yes, I think that is right answer. It is Black approximation. Answer should be B)
You're given information about american call option. You have certain dividend, probably it was 4$. And you're asked to determine whether it is optimal to exercise this american dividend paying stock. Generally american dividend paying option is only optimal to exercise if D > K * (1 - r ^ (T-t)) condition met. Even you didn't need to calculate as long as you knew the equation for this.may u remind me more about this question?
really I dont remeber well this question or my answer.You're given information about american call option. You have certain dividend, probably it was 4$. And you're asked to determine whether it is optimal to exercise this american dividend paying stock. Generally american dividend paying option is only optimal to exercise if D > K * (1 - r ^ (T-t)) condition met. Even you didn't need to calculate as long as you knew the equation for this.
what is the answer was?You're given information about american call option. You have certain dividend, probably it was 4$. And you're asked to determine whether it is optimal to exercise this american dividend paying stock. Generally american dividend paying option is only optimal to exercise if D > K * (1 - r ^ (T-t)) condition met. Even you didn't need to calculate as long as you knew the equation for this.
Hi, may i know what was the portfolio being referred to in letter "c" of the efficient portfolio question?I think C is appropriate answer
the prob is 12.5
I remeber this question was about efficient fronter and u should to chose a portfolio from 4 portfolios, I remebr my answer was portfolio CHi, may i know what was the portfolio being referred to in letter "c" of the efficient portfolio question?
Was it the leftmost point or the rightmost. Sorry i forgot what the choices were. Thanks.I remeber this question was about efficient fronter and u should to chose a portfolio from 4 portfolios, I remebr my answer was portfolio C
Was it the leftmost point or the rightmost. Sorry i forgot what the choices were. Thanks.I remeber this question was about efficient fronter and u should to chose a portfolio from 4 portfolios, I remebr my answer was portfolio C
my answer was portfolio C and it was not on the efficient fronter, it was to the left of efficient fronterWas it the leftmost point or the rightmost. Sorry i forgot what the choices were. Thanks.
Shouldnt the answer be the one that lies within the new efficient frontier combining the three funds. I recall now, the closest to the three drawn efficient frontiers is either portfolio b or d. I.e., when i drew a curve encompassing the previously drawn curves i ended up with b but the curve i drew tend to intersect the curve combining fund 1 and 2. When i readjusted, i was able to hit d. Now im wondering where c was... If it was the leftmost point, then it couldnt be included in the new efficient frontier. The fourth point i think lies below the three drawn curves so it cant be the answer either.my answer was portfolio C and it was not on the efficient fronter, it was to the left of efficient fronter
My drawing is TERRIBLE but if I remember correctly C was within the frontier and B was outside to the left a bit. The new frontier with all 3 assets should move to the left a bit so B in the attached (you have to forgive the shodiness of the graph) should be the answer (IMO).
I think we did not have the same graph as given. There were three points to the left of the curve connecting mid a and mid c. Portfolio d was also on the left of said curve. it was situated in between but a bit below a and b.My drawing is TERRIBLE but if I remember correctly C was within the frontier and B was outside to the left a bit. The new frontier with all 3 assets should move to the left a bit so B in the attached (you have to forgive the shodiness of the graph) should be the answer (IMO).