Derivatives

A Discussion of Fi nancial Economics in actuarial Models A Preparation for the Actuarial mental test MFE/3F marcel B. Finan are Tech University c All Rights Reserved earlier compose October 10, 2011 2 To Pallavi and Amin Preface This is the third of a serial publication of view ass intended to help individuals to retrogress actuarial exams. The present holograph 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 find out each section, work on the embedded examples, and then feat the problems. Answer keys are provided so that you check your numerical answers against the lay ones. Problems taken from previous SOA/CAS exams bemuse out be indicated by the symbol ‡. This manuscript can be used for personalized 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 infix 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 notes Options . . . . . . . . . . . . . . . . . . . . . . 6 Parity of European Options on Bond! s . . . . . . . . . . . . . . . . 7 Put-Call Parity Generalization . . . . . . . . . . . . . . . . . . . . 8 Labeling Options: Currency Options . . . . . . . . . . . . . . . . . 9 No-Arbitrage limit on Option Prices . . . . . . . . . . . . . . . . 10 General Rules of Early coiffe on American Options . . . . . . . 11 E?ect of maturity 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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