TAILIEUCHUNG - Essentials of Investments: Chapter 16 - Option Valuation

Essentials of Investments: Chapter 16 - Option Valuation to discuss factors that affect option prices and to present quantitative option pricing models. It includes Factors influencing option values, BlacScholes option valuation, Using the BlacScholes formula, Binomial Option Pricing. | Bodie Kane Marcus Perrakis Ryan Chapter 16 INVESTMENTS, Fourth Canadian Edition Option Valuation Slide 18-1 Copyright © McGraw-Hill Ryerson Limited, 2003 Bodie Kane Marcus Perrakis Ryan INVESTMENTS, Fourth Canadian Edition Chapter Summary Objective: To discuss factors that affect option prices and to present quantitative option pricing models. Factors influencing option values Black-Scholes option valuation Using the Black-Scholes formula Binomial Option Pricing Slide 18-2 Copyright © McGraw-Hill Ryerson Limited, 2003 Bodie Kane Marcus Perrakis Ryan INVESTMENTS, Fourth Canadian Edition Option Values Intrinsic value - profit that could be made if the option was immediately exercised Call: stock price - exercise price Put: exercise price - stock price Time value - the difference between the option price and the intrinsic value Slide 18-3 Copyright © McGraw-Hill Ryerson Limited, 2003 Bodie Kane Marcus Perrakis Ryan INVESTMENTS, Fourth Canadian Edition Time Value of Options: Call Option value Value of Call Intrinsic Value Time value X Slide 18-4 Stock Price Copyright © McGraw-Hill Ryerson Limited, 2003 Bodie Kane Marcus Perrakis Ryan INVESTMENTS, Fourth Canadian Edition Factors Influencing Option Values: Calls Factor Stock price Exercise price Volatility of stock price Time to expiration Interest rate Dividend Rate Slide 18-5 Effect on value increases decreases increases increases increases decreases Copyright © McGraw-Hill Ryerson Limited, .

• Kinh tế học
• Essentials of Investments
• Option Valuation
• Factors influencing option values
• BlacScholes option valuation
• Using the BlacScholes formula
• Binomial Option Pricing
• Ebook Essentials of investments
• Investment companies
• Debt securities
• Portfolio theory
• Securities markets
• Capital asset pricing
• Derivative markets
• Active investment management
• Equity valuation
• Financial statement analysis
• Financial Assets
• The Investment Process
• Major Classes of Financial Assets
• Key Trends
• Global Markets
• Industry analysis
• Options markets
• Futures markets
• Asset classes
• Financial instruments
• Other investment companies
• Behavioral finance
• Technical analysis
• Mutual funds
• International investing
• Performance evaluation
• Financial Markets
• Money Market Instrument Yields
• Bank Discount Rate
• Bond Equivalent Yield
• Securities market
• Secondary Security Sales
• Investment Banking Arrangements
• Public Offerings
• Private Placements
• Net Asset Value
• Types of Investment Companies
• Rates of Return
• Returns Using Arithmetic
• Geometric Averaging
• Dollar Weighted Returns
• Dollar Weighted Average Using Text
• Efficient Diversification
• Correlation Coefficients
• Three Security Portfolio
• Minimum Variance Combination
• Extending Concepts to All Securities
• Arbitrage Pricing Theory
• Resulting Equilibrium Conditions
• Capital Market Line
• Market Risk Premium
• The Efficient Market Hypothesis
• Versions of the EMH
• Types of Stock Analysis
• Resource Allocation
• How Tests Are Structured
• Behavioral Critiqu
• Share Price
• Moving Averages
• Bond Prices
• Bond Characteristics
• Corporate Bonds
• Preferred Stock
• Innovation in the Bond Market
• Bond Pricing Relationships
• Rules for Duration
• Callable Bonds
• Mortgage Backed Securities
• Passive Managemen
• Fundamental Analysis
• The Global Econom
• The Domestic Macroeconom
• The Domestic Macroeconomy
• Models of Equity Valuation
• Valuation by Comparables
• Limitations of Book Value
• Financial Statements
• Profitability Measures
• Financial Leverage
• Option Terminology
• Exercise Price Relationships
• European Options
• Different Types of Options
• Risk Management
• Basics of Futures Contracts
• Existing Contracts
• Trading Mechanics