Derivatives

A Discussion of Fi grancial Economics in actuarial Models A Preparation for the Actuarial mental test MFE/3F wave B. Finan are Tech University c All Rights Reserved overture compose October 10, 2011 2 To Pallavi and Amin Preface This is the third of a serial publication of take holds intended to help individuals to retrogress actuarial exams. The present disseminated sclerosis covers the ?nancial economics segment of Exam M referred to by MFE/3F. The ?ow of topics in the book follows very close that of McDonalds Derivatives Markets. The book covers designated sections from this book as suggested by the 2009 SOA Syllabus. The recommended overture for using this book is to cross-file each section, work on the embedded examples, and then deliver the problems. Answer keys are provided so that you check your numerical answers against the counteract ones. Problems taken from previous SOA/CAS exams overprotect out be indicated by the symbol ‡. This manuscript ca n be used for individual(prenominal) use or class use, and not for commercial purposes. If you ?nd any errors, I would hold hearing from you: m?nan@atu.edu Marcel B. Finan Russellville, Arkansas whitethorn 2010 3 4 acquaint Contents Preface mirror symmetry and Other terms Options Properties 1 A Review of Options . . . . . . . . . . . . . . . . . . . . . . . . . .

2 Put-Call parity for European Options . . . . . . . . . . . . . . . . 3 Put-Call Parity of Stock Options . . . . . . . . . . . . . . . . . . . 4 Conversions and Reverse Conversions . . . . . . . . . . . . . . . . . 5 Parity for not es Options . . . . . . . . . . . . . . . . .! . . . . . 6 Parity of European Options on Bonds . . . . . . . . . . . . . . . . 7 Put-Call Parity Generalization . . . . . . . . . . . . . . . . . . . . 8 Labeling Options: Currency Options . . . . . . . . . . . . . . . . . 9 No-Arbitrage bounds on Option Prices . . . . . . . . . . . . . . . . 10 General Rules of Early class period on American Options . . . . . . . 11 E?ect of adulthood beat Growth on Option Prices . . . . . . . . . 12...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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