Scheduling Information: |
Time: Friday, February 14, during the usual class time.
Location: HOA 160, our regular classroom. Review Session: Wednesday, February 12, from 7:30-8:20 in WEH 7500 |
Reading: |
Chapter 1 (all) and Chapter 2 (Sections 2.1-2.4) |
Exercises: |
Chapter 1: #2, 7, 9, 10, 12, 15, 16, 17, 22, 24, 26.
Chapter 2: #1, 3, 6, 9. Answers: Chapter 1: (2) a) $25,000, b) -$15,000. (7) a) n/a. b) (i) $7200, (ii) $9200, (iii) $8000. (9) S>$106.33 (10) a) $200. b) $8000. c) -$2000. (12) 143.23 yen per dollar (15) 12.29% (16) $103.88 (17) $6.82 (22) a) n/a b) hold 2/5 share of stock 1, 2/5 share of stock 2, and deposit $4.36 in the bank. The arbitrage-free price is $20.36. (24) a) hold 4/5 of a share of stock, 2 puts and a loan of $38.40 from the bank. b) $1.60. (26) A=$1,903,179.35 Chapter 2: (1) a) $35,700, b) $57,296, c) $59,015, d) $59,418. (3) a) r[4]=.0805, b) r[∞]=.0797 (6) 3.92% (9) n/a. |
Formula Sheet: |
Here is the formula sheet you'll be given with the midterm exam. There's not that much to it. |
Calculator: |
Remember that you will need to have one of the approved calculators: TI-30X IIS, TI-30XS Multi-View or TI-30Xa. Amazon has some in stock and offers next day and second day shipping. [Disclaimer: I have no affiliation with Amazon other than as a customer.] |
Old Exam Problems: |
Here is a collection of exam problems I've given to students in previous semesters. Before the questions come in - no, I don't have solutions available for these problems. You have problems from the text with answers, and it's important for you to get used to working on problems where the answers are not available. You'll have a chance to ask questions at the Review Session, and during your TA's office hours, too. |