Volatility

funded status of an average Canadian pension fund improved from 65% to almost 90% because of one of the longest stock market rallies and interest rate stabilization. Pension plans still remain largely exposed to the significant and unpredictable volatility of interest rates and market risk as shown in the drop in interest rates in 2013/2014 and the stock market correction in 2011. It is urgent for pension funds to mitigate these risks in a maturing market. Interest rate risk can be mitigated by increasing

top of each spreadsheet you’ll find all the input variables: r = rate = risk-free rate per annum (continuous compounding), q = dividend yield per annum (also with continuous compounding), S = current stock price, X = exercise price, ? = sigma = volatility per annum, as well as the Settlement Date (normally the date on which the option was traded), the Option Expiry Date, and for the two spreadsheets Puts&Dvd.xls and Call&Dvd.xls we also have Next Dividend Payment Date, the Dividend Payment, and the

Executive summary Blue Arrow is a publicly held firm and the leading UK employment agency. The management is thinking about expanding further in to the US by buying the largest temporary help company in the world, Manpower. The bid was to be made by a cash tender offer funded by a fully underwritten rights issue of £837 million. In this report we calculate the value of one right and the value of the underwriter's put as of August 3 by using the Black-Scholes and put-call parity valuation approach

Partners Healthcare Executive Summary Partners Healthcare is considering the introduction of real assets into the organization’s portfolio. The analysis will demonstrate the effects of having one risky asset and one risk-free asset in a portfolio. Our analysis will also show that the introduction of real assets can decrease the risk of the hospital’s portfolio. Each hospital in the healthcare system can determine the appropriate portfolio mix based on their desired expected level of

consistently over time, then such market is fraught with high volatility – a typical case of the crude oil market. A sudden increase in oil price becomes a concern for the consumer as it results into a reduction in his purchasing power; thereby struggling with allocation of income among competing demands. For an investor, high price volatility increases risk associated with the investment and also creates uncertainties. High volatility will impact the macroeconomic variables in an economy including

Date: February 4, 2015 To: Professor John Chalmers From: Zhengyang Leng, Subject: Case Study Memo of Valuing Stock Options in a Compensation Package There are two choices for Sally Jameson to choose, either receive $5,000 in cash or a stock option instead. In this case, the company gives Sally a European style call on a non-dividend paying stock now selling for $18.75, with an exercise price of $35, and a maturity of five years. There are also two scenarios if we assume that Sally Jameson is

increase volatility in stock market. They reveal that volatility can be high particularly during the week around an election, implying that election outcome was not expected by the majority of the investors- so that it is an ‘election shock’ or a surprise for them. Add to that, they report that newly established stock markets or markets with short trading history show stronger responses to election outcomes. Gunay (2016) studies the impact of internal political risk on return volatilities of the BIST100

I have decided to Invest $10000 in Google Inc. Google is American multinational technology company specializing in Internet-related services and products. These include online advertising technologies, search, cloud computing, and software, Most of its profits are derived fromAdWords, an online advertising service that places advertising near the list of search results. Just days after Google took investors on a thrilling 20 percent upswing by trouncing analysts ' expectations in its quarterly

Crude oil is still a driving force of the world economy today. Changes in the price of oil have significant effects on economic growth, development and welfare in countries. Oil price volatility has had its ups and downs in the past year as well as the past decade. Oil prices fluctuate for a number of reasons. One reason why oil prices fluctuated is because of rising global economic activity. It can increase demand and push prices higher, while rising production can cause prices to decline. During

Margin Call  Provide a brief summary of the plot of the movie. Plot Margin Call is a 2011 drama film that portrays crucial events that took place during the financial crisis of 2007 to 2008. The company goes through an unannounced mass layoff by human resources staff. Peter Sullivan and his junior risk analyst, Seth Bregman as well as trading desk head, Will Emerson watch as many employees get called in. One of them includes Eric Dale, head of risk management (Peter and Seth’s boss). Eric tries