Effect Of Put Call Parity Essay

FDRM Project On 9/17/2014 Estimation of NIFTY Spot Price Using Put-Call Parity Under the guidance of Professor Rajiv Srivastava Submitted by: Abhay Sharma (1A) Ayush Gupta (9C) Sachin Gupta (38A) Shikhar Mathur (45A) Table of Contents 1. 2. 3. 4. 5. 6. Executive Summary………….………………………..……………………………….………………..2 Introduction ……………………..………………………………………………………………….……..3 1.1 Why Derivative Markets…………………………….………………………………………………….……..3 1.2 Derivative Markets…………………………………………………………………………………………

can be exercised at any time during its life. : True 5. A put option will always be exercised at maturity if the strike price is greater than the underlying asset price. : True 6. The fact that the exchange is the counter-party to every futures contract issued is important because it eliminates interest rate risk. : False 7. Index arbitrage is a strategy which exploits differences between actual index futures

__________________________ Date: _____________ 1. Covered Interest Parity (CIP) is best defined as: A) When a government brings its domestic interest rate in line with other major financial markets B) When the central bank of a country brings its domestic interest rate in line with its major trading partners C) An arbitrage condition that must hold when international financial markets are in equilibrium D) None of the above 2. When Covered Interest Parity (CIP) holds between two different countries X and Y,

Groupe Ariel S.A: Parity Conditions and Cross-Border Valuation Abstract This case discusses Cross-Border valuation of projects. This kind of analysis is common for companies that are operating in many countries. Groupe Ariel is one such company that is considering investing in a project in its own subsidiary in Mexico. The company manufactures and sells printers, copiers and other document production equipment in many countries. As far as, expansion into new markets is concerned, company is very

Groupe Ariel Sa Case Analysis Groupe Ariel S.A: Parity Conditions and Cross-Border Valuation Abstract This case discusses Cross-Border valuation of projects. This kind of analysis is common for companies that are operating in many countries. Groupe Ariel is one such company that is considering investing in a project in its own subsidiary in Mexico. The company manufactures and sells printers, copiers and other document production equipment in many countries. As far as, expansion into new markets

Carrefour FIN4812 International Finance Case Analysis CARREFOUR S.A This report is created with a discussion over several important international finance topics for instance, interest-rate parity, currency risk management, regarding description on Carrefour S.A. financing policies as well as hedging strategy. Additionally, we also discussed on which currency Carrefour should issue its 10-year, 750 million euro, annual coupon bond, its foreign currency risk exposure and a possible hedging

paper I am acting like whoever is reading this doesn’t know what ram is.) Ram or Random Access Memory is made to take data from the hard drive and put it in itself so you can use it without it being unbearably slow. RAM must be refreshed often otherwise it loses its data and we wouldn’t want that so since it must be refreshed (it refreshes itself) we call this it volatile. Ram has changed a lot since the first computers and there are tons of types of RAM. For example there is DRAM (Dynamic RAM Dynamic

value of the underwriter's put as of August 3 by using the Black-Scholes and put-call parity valuation approach. In addition we assess the sensitivity and validity regarding these calculations, and discuss the fee charged by the underwriter. The detailed assumptions regarding our calculations are: o The rights are issued on August 3; one right can be

Abstract This paper will discuss the different effects managed care has on the quality of mental health care for its clients. On the positive, managed care has increased availability to a cliental that would otherwise not be able to afford mental health care. On the negative, there has been a reduction in quality in order for managed care corporations to keep costs low and still make money. Proper implementation of managed mental health care would likely result in high quality, low cost mental health

. I Chapter 3 Principles of Option Pricing 54 Basic Notation and Terminology 55 Principles of Call Option Pricing 57 Minimum l0lut oj a Call 57 Maximum value oj a Call 59 Value oj a Call at Expiration 59 Effect oj Time to Expiration 60 Effect ofExercise Price 62 Lower Bound oja European Call 65 American Call Versus European Call 67 Early Exercise oJAmerican Calls on Dividend-Paying Stochs 69 Effict oj Interest Rates