tailieunhanh - Ebook Finance - A quantitative introduction: Part 2

(BQ) Part 2 book "Finance a quantitative introduction" has contents: Option pricing in discrete time, option pricing in continuous time, real options analysis, selected option applications, agency problems and governance,. and other contents. | 7 Option pricing in discrete time Options are financial contracts that give their holders the right, but not the obligation, to buy or sell something on a future date at a price determined today. The distinction between right and obligation, which gives the holder a choice, is an essential characteristic. Options are derivative securities, they derive their values from the assets to be bought or sold in the future. The use of option-like contracts is very old. The oldest examples go back to Greek antiquity and in the 1600s options on rice were traded in Japan and options on tulips in the Netherlands. However, the world’s first options exchange did not open until 1973 in Chicago (Chicago Board of Options Exchange). In the same year Black and Scholes published their famous option-pricing formula. The trade in standardized options in Europe started in 1978 on the European Options Exchange in Amsterdam and has grown tremendously since then. In this chapter we will model option prices in discrete time. After discussing the basic characteristics of options, we will lay the foundations of option pricing in state-preference theory. We then look at binomial option pricing with the wonderful Cox–Ross–Rubinstein model. Options as securities . This introductory section describes the most important characteristics of options and introduces some terminology, option positions and bounds on option prices. Characteristics of options The majority of options traded today are standard options that are created by exchanges. Standard options are easily traded because they refer to a fixed quantity of the underlying asset (. options on 100 shares, bonds, ounces of gold) and to a limited number of maturity dates and exercise prices. This concentrates trade in the available standard options and, thus, enhances the liquidity of the market. In addition to standardization, option exchanges make trading easy .

• Tài chính doanh nghiệp
• Finance a quantitative introduction
• A quantitative introduction
• Discrete time
• Option pricing in continuous time
• Real options analysis
• Agency problems
• Fundamental concepts
• Modern portfolio theory
• Valuing levered projects
• Capital structure
• Quantitative finance
• Physicists an introduction
• Financial markets
• Probability distributions
• Stochastic processes
• Time series analysis
• Nonlinear dynamical systems
• Financial time series
• Agent based modeling
• Fractals
• Fundamental techniques
• Market efficiency
• Pricing portfolios
• Option pricing
• Continuous time
• Selected option applications
• Profitability and market capitalization
• Implementation of IFRS
• Problems of adoption
• Company related problems
• Investor’s related problems and government agency related problems
• Free cash flow
• Corporate governance
• Free cash flow hypothesis
• Large free cash flows