Example AFI has SOLD for $300,000 a European call on 100,000 shares of a non-dividend paying stock: S 0 =49 =50 r=5%=20% μ=13% T =20 weeks The Black-Scholes value of the option is $240,000 How does the Fl hedge its risk?
Notation : European call C: American Call option option price price p: European put P: American Put option option price price So: Stock price today·Sr:Stock price at time X: Strike price D: Present value of T: Life of option
UN/T 3 TEXT A PRE-READING QUESTIONS 1.Can you tell us something about Stevie Wonder according to our text? 2.What does the title mean? 3. What do you think of his accomplishment? ANSWER TO QUESTION (1) ? pop star/ born blind/ black/ poor family/ love music ? learn to play instruments very quickly/has been recording artist since the age of ten ? being an adult,encounter serious car accident/fight back from the shadow of death begin to pay more attention to the world outside/bring sunshine
Application of MR2T2 algorithm in statistical mechanics Canonical ensemble: Distribution function: p(rN)=exp(-E(rN)/KT)/Q Q= JdrN exp(-E(rN)/kT) Different states of the Markov chain: In the application of Metropolis algorithm to a simulation of molecular system, the states of the Markov chain correspond to different configurations of the molecular system
