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Derivatives – Phase 2 – Option Pricing Models
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Deliverable Length:
800-1000
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Due Date:
1/20/2014 10:59:59 PM CT –
MINUM OF 3 REFERENCES/ ORIGINAL WORK
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Define and Explain the uses of each of the following principles of option pricing:
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Minimum value of the put or call
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Maximum value of a put or call
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Value of a put or call at expiration
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Effect of time to expiration
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Effect of exercise price
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Effect of interest rates
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Effect of stock volatility
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