Exams are coming!
Get ready with premium notes and study guides!

Class Notes for FIN 3506 at Temple University

TEMPLEFIN 3506Bruce B.RaderFall

FIN 3506 Lecture Notes - Lecture 2: S&P 500 Index, Futures Exchange, Sweet Crude Oil

OC6094035 Page
6 Oct 2016
11
Futures contracts are just agreements to make delivery and take delivery of a specific quantity and quality of an underlying asset. It should be noted
View Document
TEMPLEFIN 3506Bruce B.RaderFall

FIN 3506 Lecture Notes - Lecture 13: Day Count Convention, Currency Swap, Libor

OC6094037 Page
6 Oct 2016
4
Learning objectives: understand the basics of plain vanilla interest rate swaps. Assuming settlement is 6 months and libor is 10% A pays b (10 + 2)/(2)
View Document
TEMPLEFIN 3506Bruce B.RaderFall

FIN 3506 Lecture Notes - Lecture 4: Effective Interest Rate, Repurchase Agreement, Eurodollar

OC6094035 Page
6 Oct 2016
8
Interest rates are the cost of borrowing money. The con be thought of as the amount of rent fro the use of money. Rates are specific to the type of mar
View Document
TEMPLEFIN 3506Bruce B.RaderFall

FIN 3506 Lecture Notes - Lecture 11: Risk-Free Interest Rate, Delta Gamma, Stochastic Differential Equation

OC6094036 Page
6 Oct 2016
4
One of the most interesting aspects of options is how a financial institution that has written an option will be able to hedge the risks. Black-scholes
View Document
TEMPLEFIN 3506Bruce B.RaderFall

FIN 3506 Lecture Notes - Lecture 1: New York Mercantile Exchange, Spot Contract, Futures Contract

OC6094033 Page
6 Oct 2016
4
Learning objectives: understand what a futures contract is, it uses and its history, understand the concept of an options contract, know the different
View Document
TEMPLEFIN 3506Bruce B.RaderFall

FIN 3506 Lecture Notes - Lecture 7: Risk-Free Interest Rate, Put Option, Call Option

OC6094034 Page
6 Oct 2016
16
Learning objectives: understand the bounds for a stock option, learn and be able to apply put/call parity, the effects of dividends on the bounds of op
View Document
TEMPLEFIN 3506Bruce B.RaderFall

FIN 3506 Lecture Notes - Lecture 9: Rational Pricing, Risk-Free Interest Rate, Put Option

OC6094036 Page
6 Oct 2016
8
The following is a little different approach than that of you text but results in the same answers. The equations present in the text solve the general
View Document
TEMPLEFIN 3506Bruce B.RaderFall

FIN 3506 Lecture Notes - Lecture 5: Risk-Free Interest Rate, Arbitrage, Cash Flow

OC6094036 Page
6 Oct 2016
5
Asset that are pieces of paper that represent claims that are held by a significant number of investors. Examples: stocks bonds mutual funds etc: consu
View Document
TEMPLEFIN 3506Bruce B.RaderFall

FIN 3506 Lecture Notes - Lecture 6: Strike Price, Call Option, Option Style

OC6094036 Page
6 Oct 2016
4
An option gives the holder the right (not the obligation) to buy/sell something (called the underlying asset) at a fixed price (called the strike price
View Document
TEMPLEFIN 3506Bruce B.RaderFall

FIN 3506 Lecture Notes - Lecture 14: Confidence Interval, Standard Deviation, Justice Of The Peace

OC6094035 Page
6 Oct 2016
4
Recently there has developed a need to establish a single number that gives senior management a summarization of the overall risk faced by the firm. Th
View Document
TEMPLEFIN 3506Bruce B.RaderFall

FIN 3506 Lecture Notes - Lecture 3: Futures Exchange, Futures Contract, Spot Contract

OC6094037 Page
6 Oct 2016
5
Hedging is the process of reducing the risk in a cash market position by using futures contracts. To do this you take the opposite position in the futu
View Document
TEMPLEFIN 3506Bruce B.RaderFall

FIN 3506 Lecture 12: Notes_12_Derivatives

OC6094036 Page
6 Oct 2016
4
Portfolio insurance is the protection on the downside of the value of a portfolio. This is the same as buying a put option and this is just how it is d
View Document
View all professors (1+)

Class Notes (1,100,000)
US (480,000)
Temple (4,000)
FIN (30)
FIN 3506 (10)