Slides Fundamentals of Investments - Chapter 14 ppt

... strike price of $90 expiring in three months at $500 ($5 per share)?  Three months later, Case 2: $90 $0 0% -$ 500 -1 00% Case 3: $80 -$ 1,000 -1 1.11% -$ 500 -1 00% © 2002 by The McGraw-Hill Companies, ... include: http://www.cboe.com http://www.cbot.com http://www.cme.com Stock Index Options 14 - 25 © 2002 by The McGraw-Hill Companies, Inc. All rights reserv...

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... dollar return = 48% of $1,000 = $480  At the end of the year, the value of your $1,000 investment is $1,480. The Historical Record: A Closer Look 1 - 12 @2002 by the McGraw- Hill Companies Inc.All ... average, for bearing risk. © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw Hill / Irwin 1 - 26 Work the Web  For an easy-to-read review of basic statist...

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... © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw Hill / Irwin 6 - 33 Chapter Review  An Analysis of the McGraw-Hill Company © 2002 by The McGraw-Hill Companies, Inc. All ... Price-Cash Flow Ratios Î Price-Sales Ratios Î Price-Book Ratios Î Applications of Price Ratio Analysis © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw Hill / Irwin 6...

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... McGraw-Hill Companies, Inc. All rights reserved. McGraw Hill / Irwin 15 - 11 The Black-Scholes-Merton Option Pricing Model  The Black-Scholes-Merton option pricing model states the value of a ... Hill / Irwin 15 - 13 The Black-Scholes-Merton Option Pricing Model © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw Hill / Irwin 15 - 21 Measuring the Impact of...

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... per share of $1.13. Finally, based on Coors 1995 year-end stock price of $23.25, we obtain a price-book ratio of 1.28 and a price-earnings ratio of 20.58. The operating cash flow section of Adolph ... Net Sales of $120,000 are realized with an assumed cost of goods sold of $90,000. Under the pessimistic scenario, only $100,000 of net sales are realized with a cost of goods...

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... basis, you earned In a 365-day year, there are 365/170 = 2 .147 periods of 170-day length. So if we multiply what you earned over the 170-day period by the number of 170-day periods in a year, we ... money prices in each of these markets This chapter is the first dealing specifically with interest-bearing assets. As we discussed in Chapter 3, there are two basic types of interest-...

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... 4 5 AA AA- A+ High credit quality, investment-grade bonds. A2 A3 Baa1 6 7 8 A A- BBB+ Upper-medium quality, investment-grade bonds. Baa2 Baa3 9 10 BBB BBB- Lower-medium quality, ... high enough to justify accepting the higher default rates of junk bonds. As an example of this logic, consider the following back -of- the-envelope calculations. Suppose that the average yie...

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... $66.67. Remaining principal amounts for A-, B-, C-, and Z-tranches assuming 100 PSA prepayments are graphed in Figure 13.5A. Corresponding cash flows for A-, B-, C-, and Z-tranche assuming 100 PSA prepayments ... schedule of monthly payments required for 5-year, 10-year, 15-year, 20-year, and 30-year mortgages based on annual interest rates ranging from 5 percent to 15 percent in increments...

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... Analyze the impact of a swing in coffee prices of 10 cents per pound in either direction if you have a 10-contract position, where each contract calls for delivery of 37,500 pounds of coffee. You would ... are stated as: Buy 4 C-M9 contracts Sell 8 KC-Z0 contracts Examples of the next two trade types are orders that close out these positions: Sell 4 C-M9 contracts Buy 8 KC-Z0 contra...

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... different rate of return for the two risk-free investment strategies. Of course, if two different risk-free investment strategies offer different returns, the choice is simple - select the strategy ... on one-year risk-free investments in the United States is 5 percent. The German mark/U.S. dollar exchange rate is DM 1 = $.50. If the risk-free rate in Germany is 4 percent, what is t...

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