Midterm 2 will be given during class on Thursday, November 2. This test consists of 4 problems. You are only required to complete 3 problems. At your option, you may complete all 4 problems, in which case I will throw out the problem on which you receive the lowest score.
The questions involve topics which we have covered since the first midterm exam. Topics covered include 1) demand for insurance, 2) moral hazard/adverse selection, 3) portfolio theory/capital market theory, and 4) financial derivatives (calls and puts specifically).
By the way, I have posted the formula sheet that I plan to use on the exam at the following location: http://fin4335.garven.com/fall2017/formulas_part2.pdf.
As I noted in my “Plans for next week in Finance 4335” blog posting, tomorrow’s class meeting will be devoted to a review session for midterm exam. If you haven’t already done so, I highly recommend that you review Problem Sets 5-8 and also try working the Sample Midterm 2 Exam (solutions are also provided) prior to coming to class tomorrow.