# Category Archives: Problem Set Solutions

# The solutions for Problem Set 7…

… are available at http://fin4335.garven.com/spring2019/ps7solutions.pdf…

# Option Pricing Class Problem Solutions

The solutions for Parts A and B of today’s Option Pricing Class Problem handout are available at http://fin4335.garven.com/spring2019/BinomialOPMClassProblemSolutions.pdf. I provided solution procedures using all of the methods that were showcased during today’s class meeting; i.e., replicating portfolio, delta hedging, risk neutral valuation, and put-call parity.

Next Tuesday, we will start class by introducing the concept of multiperiod binomial models, and working parts C and D of today’s Option Pricing Class Problem handout. In the meantime, I highly recommend that students review these solutions and take a stab at solving Parts C and D on your own.

# Solutions for Problem Set 6…

… are available at http://fin4335.garven.com/spring2019/ps6solutions.pdf.

# Adverse Selection Class Problem Solutions and Spreadsheet

For the “Adverse Selection Dynamics” class problem that we worked on today, the solutions.pdf and spreadsheet are available at the links provided below:

- Adverse_Selection_Dynamics_Numerical_Example__Solutions_.pdf (solutions.pdf)
- Numerical Example of Dynamic Adverse Selection (spreadsheet)

# Solutions for today’s Moral Hazard Class Problem…

… are available at the link provided below. I highly recommend that you review these solutions.pdf, and also try using the spreadsheet located at http://fin4335.garven.com/execcomp.xls which validates the results summarized in this document.

# Solutions for Fall 2018 Finance 4335 Midterm 1 exam and for Problem Set 5

I have posted the solutions.pdf for the Fall 2018 Finance 4335 Midterm 1 exam; the direct link is http://fin4335.garven.com/spring2019/midterm1_fall2018_solutions.pdf; also linked from the sample exams webpage located at http://fin4335.garven.com/sample-exams/.

I have also posted the solutions.pdf for Problem Set 5 at the following location: http://fin4335.garven.com/spring2019/ps5solutions.pdf.

I’ll post the formula page for Thursday’s midterm exam sometime tomorrow; I’ll notify y’all about this via the blog the moment it gets posted.

# Solutions for Problem Set 4…

.. are available at http://fin4335.garven.com/spring2019/ps4solutions.pdf…

# Solutions for Problem Set 3…

… are available at http://fin4335.garven.com/spring2019/ps3solutions.pdf…

# Solutions for Problem Set 2…

… are available at http://fin4335.garven.com/spring2019/ps2solutions.pdf.