Discussion of Kiyotaki & Moore „Liquidity
... • Unproductive entrepreneurs hold a portfolio mix with money and equity. Trade off: – Chance to become productive — Money is most liquid asset to finance investment – Risk to stay unproductive — Equity holdings yield higher return. ...
... • Unproductive entrepreneurs hold a portfolio mix with money and equity. Trade off: – Chance to become productive — Money is most liquid asset to finance investment – Risk to stay unproductive — Equity holdings yield higher return. ...
Forecasting Stock Market Volatility and the Informational Efficiency
... The expected volatility of financial markets is a key variable in financial investment decisions. For example, it is common practice to reduce asset allocation decisions to a two–dimensional decision problem by focusing solely on the expected return and risk of an asset or portfolio, with risk being r ...
... The expected volatility of financial markets is a key variable in financial investment decisions. For example, it is common practice to reduce asset allocation decisions to a two–dimensional decision problem by focusing solely on the expected return and risk of an asset or portfolio, with risk being r ...
Corporate Finance
... so that temporarily depressed income does not yield an overly low optimal debt ratio. Lower estimates of operating income for higher debt ratios due to indirect bankruptcy costs. ...
... so that temporarily depressed income does not yield an overly low optimal debt ratio. Lower estimates of operating income for higher debt ratios due to indirect bankruptcy costs. ...
Chapter 14
... • Debt, equity or hybrid security defined at the beginning of the option period; that is, before the security is issued • Tends to be deeply subordinated debt or preferred stock ...
... • Debt, equity or hybrid security defined at the beginning of the option period; that is, before the security is issued • Tends to be deeply subordinated debt or preferred stock ...
Chapter 5 The Financial Environment: Markets, Institutions, and
... payments and ending value. Note that long-term debt securities also have some reinvestment rate risk because their interest payments have to be reinvested at prevailing rates. p. The term structure of interest rates is the relationship between yield to maturity and term to maturity for bonds of a si ...
... payments and ending value. Note that long-term debt securities also have some reinvestment rate risk because their interest payments have to be reinvested at prevailing rates. p. The term structure of interest rates is the relationship between yield to maturity and term to maturity for bonds of a si ...
Model of the Behavior of Stock Prices
... Options, Futures, and Other Derivatives, 4th edition © 1999 by John C. Hull ...
... Options, Futures, and Other Derivatives, 4th edition © 1999 by John C. Hull ...
Investment
... Finance, the McGRaw Hill corporation has decided to retire all of its outstanding debt and become an allequity corporation. The debt is “permanent” debt, i.e. the maturity date is indefinitiely far away, and it is considered risk free. The debt has a book value of $3,000,000 and it has a 10% coupon ...
... Finance, the McGRaw Hill corporation has decided to retire all of its outstanding debt and become an allequity corporation. The debt is “permanent” debt, i.e. the maturity date is indefinitiely far away, and it is considered risk free. The debt has a book value of $3,000,000 and it has a 10% coupon ...
Doc
... a. In an AVL tree just the leaves may be only-children, and therefore for every only-child in T, there exists a unique parent node that is not an only-child. The total number of onlychildren in T is at most n/2, which means that LR(T)≤ (n/2)/n = 1/2. ...
... a. In an AVL tree just the leaves may be only-children, and therefore for every only-child in T, there exists a unique parent node that is not an only-child. The total number of onlychildren in T is at most n/2, which means that LR(T)≤ (n/2)/n = 1/2. ...
Market Risk
... ◦ The other solution is just to make up numbers. However, we want to do that in a reasonable way → Monte Carlo simulation ◦ We are going to generate observations such that the probability that they occur tomorrow is the same as the probability that they have occurred in the past ...
... ◦ The other solution is just to make up numbers. However, we want to do that in a reasonable way → Monte Carlo simulation ◦ We are going to generate observations such that the probability that they occur tomorrow is the same as the probability that they have occurred in the past ...
Storage costs in commodity option pricing
... pricing. More specifically, commodity spread options are discussed in [4], in the recent works [1], [2], and in the literature cited therein. In what follows, we present an approach where a single parameter controls the maximally ...
... pricing. More specifically, commodity spread options are discussed in [4], in the recent works [1], [2], and in the literature cited therein. In what follows, we present an approach where a single parameter controls the maximally ...
And if interest rates rise…
... prices, and moderate long-term interest rates--in the Federal Reserve Act. The Fed’s Current Position: In the FOMC's (Federal Open Market Committee) most recent Summary of Economic Projections, Committee participants' estimates of the longer-run normal rate of unemployment had a central tendency of ...
... prices, and moderate long-term interest rates--in the Federal Reserve Act. The Fed’s Current Position: In the FOMC's (Federal Open Market Committee) most recent Summary of Economic Projections, Committee participants' estimates of the longer-run normal rate of unemployment had a central tendency of ...
Investable Ideas: Generating income with premium bonds
... a par bond due to the larger semiannual interest payments. For example, a premium bond with a 4.50 percent coupon pays interest of $45 a year per $1,000, while a par bond with a 3.50 percent coupon pays interest of $35 per $1,000 over the same period. This is an attractive feature for investors who ...
... a par bond due to the larger semiannual interest payments. For example, a premium bond with a 4.50 percent coupon pays interest of $45 a year per $1,000, while a par bond with a 3.50 percent coupon pays interest of $35 per $1,000 over the same period. This is an attractive feature for investors who ...
Session 33- Market Timing Indicators II
... rates ( Interest Ratet) in each year against the level of rates at the end of the prior year (Interest Ratet-1), we arrive at the following results: Interest Ratet = 0.0139 - 0.1456 Interest Ratet-1 R2=.0728 ...
... rates ( Interest Ratet) in each year against the level of rates at the end of the prior year (Interest Ratet-1), we arrive at the following results: Interest Ratet = 0.0139 - 0.1456 Interest Ratet-1 R2=.0728 ...
Distributed Algorithms
... Model Definition Synchronous Model: There is a global clock. Packet can be sent only at clock ticks. Packet sent at time t is received by t+1. ...
... Model Definition Synchronous Model: There is a global clock. Packet can be sent only at clock ticks. Packet sent at time t is received by t+1. ...
Summary Report on OECD-China Events on Intellectual Property
... SNA describes exploration in terms of costs of various activities such as borings, aerial surveys etc. Some readers have interpreted this to mean the activity is valued as “sum of costs” ie non-market This is loose wording in the SNA. Own account exploration would be valued at the sum of costs (incl ...
... SNA describes exploration in terms of costs of various activities such as borings, aerial surveys etc. Some readers have interpreted this to mean the activity is valued as “sum of costs” ie non-market This is loose wording in the SNA. Own account exploration would be valued at the sum of costs (incl ...
Exam Review - CS 357 - The University of Alabama
... Data Structures Pre-Midterm Discussion Phillip G. Bradford The University of Alabama ...
... Data Structures Pre-Midterm Discussion Phillip G. Bradford The University of Alabama ...
Slides for Exam 3 review
... – Disjoint sets and up-tree representation • representative of each set • direction of pointers ...
... – Disjoint sets and up-tree representation • representative of each set • direction of pointers ...
Lattice model (finance)
For other meanings, see lattice model (disambiguation)In finance, a lattice model [1] is a technique applied to the valuation of derivatives, where, because of path dependence in the payoff, 1) a discretized model is required and 2) Monte Carlo methods fail to account for optimal decisions to terminate the derivative by early exercise. For equity options, a typical example would be pricing an American option, where a decision as to option exercise is required at ""all"" times (any time) before and including maturity. A continuous model, on the other hand, such as Black Scholes, would only allow for the valuation of European options, where exercise is on the option's maturity date. For interest rate derivatives lattices are additionally useful in that they address many of the issues encountered with continuous models, such as pull to par.