Notes, summaries, assignments, exams, and problems for University

1. Option Payoffs:

• Call Option: (S_T − K)⁺ = max(S_T − K, 0)
• Put Option: (K − S_T)⁺ = max(K − S_T, 0)
• Call Binary Option: 1 or Q$ when S_T > K, 0 otherwise.

2. Profit and Loss (P&L) Diagrams:

• An asset.
• A Future.
• Call option.
• Put option.
• A Binary option.
• An asset (current value 50 euros) and a Put option on the same asset with Strike 30. This strategy is used to cover potential losses, limiting them to 20 euros plus the option fee.
• Long Call + Put Option with the same Strike and Maturity. This strategy is used when a significant price movement is expected, but the direction is uncertain.
• Long position in a Call option with Strike 50 and Short Position in a Call option with Strike 60. Selling the call option reduces the overall cost of the strategy,

1. Volatility of Returns

- Small company stocks

2. Christine's Return

P0= $42.40, P1= $38.20, Divd= 1.4%

- [(38.20-42.4)/42.4] + 0.014 = -8.51%

3. Scott's Annual Return

200 shares, P0= $48, n= 4 months, dividend= $0.22

HPR= -0.120

- Annual return= (1-0.120417)^(12/4)-1 = -31.95%

4. Annualized Return

Annual returns: 15%, 12%, -18%, 2%, 37%, n=5

- Standard deviation= 20.03%

5. Stock Return Range

Stock return= 14.6%, standard deviation= 19.2%, two-thirds of the time?

- -4.6% to 33.8%

6. Forecasting Returns

Historical dollar-weighted... If you want to forecast, the best:

- Arithmetic average return

7. Jeanette's Future Value

Investment= $12,000, n=4, arithmetic average= 8.72%, geometric average= 8.43%

- FV= 12,000(1+0.0843)^4 = $16,587

8. Black Stone's Geometric Average

Present simple or the present continuous

Beth often goes (go) to the cinema

We are learning (learn) the present simple the week

My father likes classical music but he doesn't like (not like) pop music

John and Chris are doing (do) their homework now

Tom's mother isn't working (not work) at the moment

My best friend has got (have got) two brothers and one sister

I can help you with the cooking. I am not studying (not study) today

Robert often visits (visit) his grandparents

Past simple – past continuous

We did (do) our homework at 6.30 p.m. yesterday

They met (meet) while they were studying (study) at the university

I didn't listen (not listen) when the teacher explained (explain) the problem

We saw (see) when we played (play) in the park

When I got up... Continue reading "English Grammar Exercises: Present Simple, Past Simple, Comparative, Gerunds, and Infinitives" »

INDEPENDENCE, CONSTITUTION, BILL OF RIGHTS

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ROAD TO INDEPENDENCE

WHY INDEPENDENCE? Two main ideological roots that are opposed:

US Federalism and the Division of Powers

Federalism is a system where two or more governments share powers over the same geographical area. The U.S. Constitution grants specific powers to both the federal (U.S.) government and the state governments. This system is fundamentally opposed to a centralized system of governance.

Categories of Governmental Power

Powers are generally categorized into three types:

• Expressed (or Enumerated) Powers: Granted specifically to the U.S. Federal Government by the Constitution (e.g., coining money, declaring war, maintaining an army, regulating immigration, conducting foreign treaties).
• Reserved Powers: Powers reserved to the States by the Constitution (e.g., property taxation, issuing driver's licenses, ensuring

Introduction to Quality Management

**Quality Evolution**. The concept of quality has always existed. Initially, artisans crafted final products from raw materials, guided by their own ideas. The Industrial Revolution followed, bringing with it "Taylorism." This led to increased productivity but decreased quality. A lack of competition meant quality was not a primary concern. Consumers had limited choices and often had to accept lower-quality products.

As competition emerged, quality became a differentiator, leading to the introduction of quality inspectors. Here's a breakdown of the evolution:

1. Product Inspection (1920s)

This initial phase focused on separating acceptable products from defective ones. Two primary methods were used:

• 100% Inspection:

Ancient Civilizations of Mesoamerica

Maya Civilization (200-900 A.D.)

• One of two highly organized civilizations in Mexico/Central America.
• Ruled by religious leaders.
• Known for building pyramids and large palaces.

Aztec Empire

• Another highly organized culture from Mexico/Central America.
• Main city: Tenochtitlan.
• Developed terraced slopes to prevent soil erosion.

Key Historical Events

Mexican Independence (1821)

Mexico gained independence from Spain in 1821.

Key Terms and Concepts

Latifundista: Large Estates

A latifundista refers to a great estate in Latin America or Spain.

Transculturation: Cultural Blending

The process where two cultures come together and produce a new one. An example is the Mestizos.

Caribbean Nations and Influences

Jamaica: British Influence

Jamaica'... Continue reading "Latin America & Caribbean: Essential Facts and History" »

Performance Management and Appraisal

Understanding Performance Management

Performance management is a goal-oriented process that ensures the implementation of processes to maximize productivity at employee, team, and organizational levels. It emphasizes a close relationship between incentives and performance, operating as a dynamic, ongoing, and continuous process. Each component of the system is integrated and linked to achieve continuous organizational effectiveness.

Performance Appraisal

Performance appraisal is a formal system for reviewing and evaluating individual or team task performance. Various methods can be employed:

Traits

This method evaluates employees based on traits such as attitude, appearance, and initiative. However, caution is... Continue reading "Performance Management and Appraisal: A Comprehensive Guide" »

Design patterns offer proven solutions to recurring software design challenges, promoting code reusability, maintainability, and efficiency. They can be categorized into three main types:

Behavioral Design Patterns

These patterns focus on communication and interaction between objects, enhancing flexibility. Examples include:

• Observer Pattern: Enables one-to-many dependencies, where changes in one object automatically notify dependent objects.
• Iterator Pattern: Provides sequential access to elements within a collection without exposing its underlying structure.

Creational Design Patterns

These patterns address object creation mechanisms, ensuring suitable instantiation processes. Examples include:

• Singleton Pattern: Restricts object creation to a single