Approaches for Calculating the Termina ...
The terminal value can be calculated using a: Single-stage (constant-growth) model. Valuation... Read More
Reading 33: Pricing and Valuation of Forward Commitments
-a. Describe the carry arbitrage model without underlying cashflows and with underlying cashflows;
-f. Describe how currency swaps are priced, and calculate and interpret their no- arbitrage value;
-g. Describe how equity swaps are priced, and calculate and interpret their no- arbitrage value.
Reading 34: Valuation of Contingent Claims
-a. Describe and interpret the binomial option valuation model and its component terms;
-c. Identify an arbitrage opportunity involving options and describe the related arbitrage;
-d. Calculate and interpret the value of an interest rate option using a two-period binomial model;
-f. Identify assumptions of the Black–Scholes–Merton option valuation model;
-i. Describe how the Black model is used to value European options on futures;
-k. Interpret each of the option Greeks;
-l. Describe how a delta hedge is executed;
-m. Describe the role of gamma risk in options trading;
-n. Define implied volatility and explain how it is used in options trading.
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2021-03-24
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2021-03-18
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2021-02-18
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2021-02-13
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2021-01-27
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2021-01-14
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2021-01-07
Crisp and short ppt of Frm chapters and great explanation with examples.