… at http://fin4335.garven.com/spring2019/ps8solutions.pdf…

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

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.

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

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)

… 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.

Moral Hazard Class Problem Solutions

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

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