Summary
Energy and Finance - Summary (Van Hull)
- Course
- Institution
- Book
Summary of Options, Futures and Other Derivatives by Van Hull (8e edition) for the course Energy and Finance (master).
[Show more]Preview 2 out of 8 pages
Some examples from this set of practice questions
1.
What is an investment asset?
Answer: An asset that is held for investment purposes.
2.
What is a margin account?
Answer: Cash or marktable securities deposited by the investor with the broker to guarantee that the investor will not walk away from the short position if the share price increases.
3.
What is the difference between an American option and European option?
Answer: An American option is option that can be exercised any time up to expiration date, while an European option is an option that be exercise only on the experiation date.
4.
What are the factors that affect the option price?
Answer: Current stock price, stock price, time to expiration, volatility, risk-free rate and the amout of future dividens.
5.
What are the assumptions for options?
Answer: No transaction cost, same tax rate for profits, borrowing and lending are possible at the risk-free interest rate, no no arbitrage opportunities
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Stuvia is a marketplace, so you are not buying this document from us, but from seller xrolinda. Stuvia facilitates payment to the seller.
No, you only buy these notes for $3.87. You're not tied to anything after your purchase.
4.6 stars on Google & Trustpilot (+1000 reviews)
95786 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now