C.1.P Updated
March 13th, 2010
Nothing of substance has changed. I simply changed the wording regarding the volatility in the problems dealing with currency options.
Update to F.1.P Problems
March 12th, 2010
Question 11 should reference question 10, and question 12 should reference questions 10 and 11.
Updates to Lessons F.1.1 and F.1.2
March 12th, 2010
I made a minor change to slide 8 of lesson F11. There was a t missing in the equation for S^u.
I also made a minor change to slide 5 of lesson F12. In the next to last equation, alpha was replaced with r.
B.2.P Solutions Updated
March 8th, 2010
For question 13, the value of Delta at the root node was incorrect.
Lesson B.2.2 Updated
March 4th, 2010
In the second slide of lesson B.2.2, there was a point where the sound went out for over a minute. We’ve posted an updated lesson to correct the problem.
C.2 and D.1 Solutions Updated
February 21st, 2010
C.2 Solutions have been updated to correct a typo in the solution to Q2. The typo was in an intermediate step and does not affect the final answer, so please think twice before wasting the paper to print out the new file.
D.1 Solutions have been updated to correct a typo in the solution to Q10. The typo was in the last paragraph and does affect some of the final numbers.
Study Schedule Updated
February 16th, 2010
A revised study schedule will be posted tomorrow, reflecting a change in the order in which materials are being covered. Unlike the previous instructor, I’ve decided to cover the materials in the order they are listed in the MFE syllabus.
Updates to Lesson C.2.1 and Problem Set B.3
February 15th, 2010
I’ve updated lesson C.2.1 to correct an error regarding the typical sign of theta for options.
Problem set B.3 was also updated in two places: Question 15 was altered slightly to correct a typo, and the solution to question 4 was re-written, although the re-write did not change the numerical answer.
Problem Set C.1 Solutions Updated
February 11th, 2010
I’ve updated the solutions to problem set C.1 to fix an omission in the solution to problem 11.
Lesson B.2.2 Updated (barely)
February 9th, 2010
I’ve made a *tiny* change to the downloadable notes for lesson B.2.2. In the sample problem at the end, I changed the wording to make it clear that a two-period model should be used.