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 introductory compose October 10, 2011 2 To Pallavi and Amin Preface This is the third of a serial of record books intended to help individuals to retrogress actuarial exams. The present manuscript 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 testify each section, work on the embedded examples, and then strain the problems. Answer keys are provided so that you check your numerical answers against the mitigate ones. Problems taken from previous SOA/CAS exams encounter out be indicated by the symbol ‡. This manuscript can be used for person-to- person 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 premiss Contents Preface mirror symmetry and Other bell 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 O! ptions on Bonds . . . . . . . . . . . . . . . . 7 Put-Call Parity Generalization . . . . . . . . . . . . . . . . . . . . 8 Labeling Options: Currency Options . . . . . . . . . . . . . . . . . 9 No-Arbitrage bounce on Option Prices . . . . . . . . . . . . . . . . 10 General Rules of Early operation on American Options . . . . . . . 11 E?ect of matureness 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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