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Test 1 | FINA 4320 - Derivative Security Markets, Quizzes of Security Analysis

Class: FINA 4320 - Derivative Security Markets; Subject: Banking and Finance; University: University of Georgia; Term: Fall 2012;

Typology: Quizzes

2011/2012

Uploaded on 11/05/2012

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Download Test 1 | FINA 4320 - Derivative Security Markets and more Quizzes Security Analysis in PDF only on Docsity! TERM 1 S(0) DEFINITION 1 Stock Price TERM 2 X DEFINITION 2 Exercise or Strike Price TERM 3 T DEFINITION 3 Time to Expiration(Days to Expiration/365) TERM 4 r DEFINITION 4 Risk-Free Rate TERM 5 S(T) DEFINITION 5 Stock Price at Expiration TERM 6 C(S(0),T,X) DEFINITION 6 Price of a call option with price, time to expiration, and strike price listed. TERM 7 P(S(0),T,X) DEFINITION 7 Price of a put option with price, time to expiration, and strike price listed. TERM 8 Min Value of a Call DEFINITION 8 European:C(S(0),T,X)>=0American:C(S(0),T,X)>=Max(0,S(0)- X) TERM 9 Max Value of a Call DEFINITION 9 C(S(0),T,X)<=S(0) TERM 10 Value of a Call at Expiration DEFINITION 10 C(S(T),0,X)=Max(0,S(T)-X)For both American and European
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