Binnenlandse Francqui Leerstoel VUB 2004-2005 2. Options and investments Professor André Farber Solvay Business School Université Libre de Bruxelles.
Valuing Stock Options: The Black-Scholes-Merton Model.
Managing Risk Certainty Equivalents Why Manage Diversifiable Risk? Types of Risk Traditional Approach to Risk Management Enterprise Risk Management.
Contemporary Investments: Chapter 18 Chapter 18 CAPITAL ASSET PRICING THEORY What is the capital market line (CML)? How is the Capital Asset Pricing Model.
© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Some Lessons From Capital Market History Chapter Twelve.
Portfolio Analysis and Theory. Portfolio Analysis.
1 Today Options Option pricing Applications: Currency risk and convertible bonds Reading Brealey, Myers, and Allen: Chapter 20, 21.
Building and Valuing the Business Model Chapter 8.
Principles of option pricing Option A contract that gives the holder the right - not the obligation - to buy (call), or to sell (put) a specified amount.
Option Pricing Models: The Black-Scholes-Merton Model aka Black – Scholes Option Pricing Model (BSOPM)
Capital Market Efficiency. Risk, Return and Financial Markets Lessons from capital market history –There is a reward for bearing risk –The greater the.
10.0 Chapter 10 Some Lessons from Capital Market History.