Volatility

In 1973, Fischer Black and Myron Scholes developed the option pricing model called Black-Scholes option pricing model. The model explains how to calculate the price of the option by using present value of the asset’s price, volatility, strike price, time to maturity, and the risk free interest rate existed in the market. Time to maturity is usually expressed as the number of days. The Black-Scholes option-pricing model can use for European call option, which pays no dividends at zero-coupon risk-free

the Health Care industry and nine other industries. Previous literature shows that the volatility of stock prices is informative; Granger causality is applied in this research by the use of a leveraged bootstrap test developed by Hacker and Hatemi-J (2006) to monitor the behavior of the volatility. The results shows evidence that support the volatility of the Health Care industry has an impact on the volatility of the Industrial, Consumer Staples and Financial industries. Also, the Health Care industry

The Impact of Derivatives on Cash Markets: What Have We Learned? Stewart Mayhew Department of Banking and Finance Terry College of Business University of Georgia Athens, GA 30602-6253 October 27, 1999 Revised: February 3, 2000 The Impact of Derivatives on Cash Markets: What Have We Learned? Abstract This paper summarizes the theoretical and empirical research on how the introduction of derivative securities affects the underlying market. A wide array of theoretical approaches has been applied

The above figure presents the world rice exporter market share in 2015, Rice exported by country totalled US $24 billion in 2011, the main country that compete in the world market for exporting rice are Thailand, Vietnam, India and Pakistan where Thailand can be considered as the second biggest rice exporter. The above bar graph represents the major rice export shares from 1998 to 2000. As the world rice kitchen Thailand have exported 26.2% which was the highest during 1998-2000.However, Vietnam

shortening) be classified and proved as ionic or covalent according to the physical properties (volatility, melting point, solubility, electrical conductivity) they demonstrate? Hypothesis: It was hypothesized that the Sodium Chloride and Potassium Chloride will have a low volatility, high melting point and will be soluble in water since they are ionic compounds. Sucrose and shortening will have high volatility, low melting points and not soluble in water as they are covalent compounds. Also it is hypothesised

Basic studies establishing the oil price economic growth relationship Hamilton (1983) stated that the correlation between oil price evolution and economic output was not of a historical coincidence for the 1948-72 period. An increasing oil price was followed 3-4 quarters later by slower output growth with a recovery beginning after 6-7 quarters. These results also apply to the period 1973-1980. The negative effect is more distinct in inflationary times. It wouldn’t have been possible to anticipate

magnitude of the bubble, they also reduce the extra volatility component. But it is important to mention that the massive reduction in trading frequency may be offset by the increase in profits in each trade offsetting the reduction of the bubble. To summarize when trading cost are small, the value of the bubble and the extra volatility component is at its maximum potential. Whereas, increases in trading costs reduce the trading frequency, asset price volatility, and the option value (Scheinkman and Xiong)

the precious metal independent of anything else in the economy. However, as the perception of gold shifts away from a safe haven investment, the value of gold could be severely impacted, turning investors to alternatives forms of hedging market volatility. Is Gold Counter-Cyclical? In the world economy, gold is one of the most complicated assets to price. Unlike stocks, currencies and other commodities, the value of the precious metal isn’t determined by fundamentals or supply and demand. Instead

seen from portfolio compare the two shares I traded. This comparison enables me to compare a stock’s per-share price. It has become a major problem to control unnecessary volatility of

3. Differences between APV and option valuation Valuing MW Acquisition by using APV method assumes in practice that exploiting of all MW’s reserves is certain and happens right after the acquisition. In other words, the APV method excludes the flexibility in future decision making. In this case, Apache has both an option to defer the exploiting of reserves into future and Apache may also choose not to exploit the MW reserves at all. As some of MW’s reserves are actually real options, the APV valuation