Basic Derivatives final exam preparation notes (100913) Bring a calculator (it doesn’t have to be a financial calculator) and a pencil, or two, to the exam. Computers, books, and phones can’t be used during the exam. 1. The exam will include: a) two strategies for which you generate the profit diagrams and explain their merits and relative merits (e.g. the problems on pp. 73, 74, and 337-338), b) one of the 3 price boundary conditions where you explain how to arbitrage them or determine an untraded…
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