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Old

in light of new years

Posted 01-02-2009 at 06:40 PM by sweetiepie
Updated 01-04-2009 at 08:01 PM by sweetiepie

the points
in your eye,
little
schartzchilde radii,
map to a line to a plane to a full length film starring
audrey hepburn as you and can I be bogie
and not peter lorre again.



she listens to her albums straight through
like she takes her poems and her scotch,
please.
she makes time even for the ones she knows by heart
like me,
always saying hello, like we never met.


...
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Old
Rating: 5 votes, 5.00 average.

T-roy's Building a Chopper

Posted 12-30-2008 at 12:11 PM by T-roy
Updated 03-25-2009 at 02:11 PM by T-roy

Steps done so far:

(1) Joined another forum (xlforum.net) username troyboy
(2) Trying to find a donor bike. The Buell 1999-2001 motors are what I am favoring (they are engines in the Buell Lightning and Buell Cyclones) and V-twins (Harley Davidson motors) with a lot of punch and noise
(3) Deciding on a frame (either RedNeck Customs Mutant, Carolina Customs Mobster or Red Barron Monster), with a 250-300 size rear tire
(4) All black color scheme, may have some...
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Views 72210 Comments 10 T-roy is offline
Old

you can do TeX!??

Posted 12-29-2008 at 01:07 AM by Marid Audran

testing, testing,

Sweet!
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Posted in Miscellany
Views 12482 Comments 1 Marid Audran is offline
Old

Why a European call option (no div.) costs more than spot minus strike

Posted 12-29-2008 at 12:52 AM by Marid Audran

I think the discussion and formula derivations in McDonald (pp. 294-95) are not as simple as they could be.*

"Spot minus strike" is the same thing as "exercise value," in the case of an American option. But I want to focus on European options, about which put-call parity says

C - P = PV(F) - PV(K).

The assumption of no dividends implies PV(F)=S, today's spot price. Applying this equality and adding P to both sides yields
...
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Posted in Exams, MFE-3F
Views 3695 Comments 0 Marid Audran is offline
Old

Why European call options (no div.) with greater time to expiration tend to cost more

Posted 12-29-2008 at 12:26 AM by Marid Audran
Updated 12-29-2008 at 12:27 AM by Marid Audran (adding category)

McDonald (p. 297) points out that American call option premiums tend to increase with time to expiration. This fact is not hard to see.

McDonald then says that the same is true for European call options

Quote:
because, with no dividends, a European call has the same price as an otherwise identical American call.
I found this explanation nonintuitive. The following explanation by example makes more sense to me:

Let S_t be the spot price of the...
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Posted in Exams, MFE-3F
Views 2910 Comments 0 Marid Audran is offline

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