Options
Chapter 20 notes and PLNs:
Partial Lecuture Notes: Examples left blank
Partial Lecuture Notes: Examples and text left blank
Complete Notes
Option graphs
General Mills Call Prices; General Mills Put Prices
Chapter 21 notes and PLNs:
Partial Lecuture Notes: Examples left blank
Partial Lecuture Notes: Examples and text left blank
Complete Notes
Examples
Cumulative Normal Distribution Table
Chapter 22 notes and PLNs:
Partial Lecuture Notes: Examples left blank
Partial Lecuture Notes: Examples and text left blank
Complete Notes
Examples
Quizzes and Keys:
Summer 2015; Summer 2014; Fall 2013; Summer 2013; Spring 2013; Fall 2012; Summer 2012; Spring 2012
Questions from older exams:
Chapter 20: Problems; Key Last Update: 9/7/2011
Chapter 21: Problems; Key Last Update: 9/7/2011
Black-Scholes: Extra Black-Scholes Problems with Check Figures Last Update: 7/31/2012
Chapter 22: Problems; Key Last Update: 9/7/2011
Chapter 22 Graph Solutions: Short-answer 4;
Short-answer 8;
Short-answer 12;
Short-answer 13
Read Chapters 20, 21, and 22 in Corporate Finance by Berk and DeMarzo
Note: Sections you can skip: 20.5, 21.3, 22.5, and 22.6.
Kahn Academy: I highly recommend watching the following videos
American Call Options
Call Payoff Diagram
American Put Options
Call Option as Leverage
Put v. Short and Leverage
Put Payoff Diagram
Put as Insurance
Put-Call Parity
Call Writer Payoff Diagram
Put Writer Payoff Diagram
Put-Call Parity Arbitrage 1
Put-Call Parity Arbitrage 2
Put-Call Parity Clarification
Actual Option Quotes
Option Expiration and Price
Homework Problems from text:
Chapter 20: 1, 3, 4, 5, 6, 7, 8, 9, 12, 13, 17, 21, 23, 29, 30
Chapter 21: 1, 2, 3, 4, 5, 12, 14, 15, 25, 26, 28
Chapter 22: 6, 8, 12, 16. Note: Check figures include problem 18 which I dropped years ago due to difficulty.
Note: Check figures on Canvas in "Files".
Spreadsheet Assignments
Wikipedia pages:
Financial Options
Call options
Put options
Put-Call Parity
Black-Scholes Option Pricing Model
Binomial Option Pricing Model
Chapter 21: Supplement Steps and explanations in some of Chapter 21's equations.