Category Archives: Problem Set Solutions

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 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.