Homework problems Investment Management (Finance) 6

Homework

Problems

are

assigned

from

the

“Questions

and

Problems”

section

at

the

end

of

the

textbook

chapters

read

each

week.

They

MUST

be

solved

in

an

Excel

worksheet

and

submitted

.

Do

not

just

enter

numeric

answers

or

type

Excel

formulas

as

comments

in

the

cells;

actually

solve

the

problems

in

the

Excel

worksheet.

I

will

attach

an

example

of

an

acceptable

solution

using

an

Excel

worksheet

Required

Textbook(s)

and

Additional

Materials

:

Cou

rse:

Investment

Management

9781260203202

Fundamentals

of

Investments

Jordan,

Bradford

D./

Miller,

Thomas

W.

Jr./

Dolvin,

Steven

D.

8th

/

McGraw

-

Hill

Required

/

New

Chapter 14 Problems 7 & 9 (p. 487

-

88)

Chapter 15 Problems 4 & 5 (p

. 525)

Chapter 16 Problems 1 & 3

(p. 561)

Week

6

Homework Tips

Chapter

1

4

#

7

.

Use equation 14.3 on p. 4

76

.

#

9

.

Use equation 14.

6

on p. 4

77

.

Chapter 1

5

#

4

Remember that each contract relates to 100 shares stock.

#5

Options investment worth does not include cost per share of

option.

Chapter 1

6

#1

Use 365 days per year. Solve this one correctly in an Excel model

based on

Example 16.2 on p. 5

41

, and you can re

-

use the model in problems #2

,

#3,

and #

4

.

The correct

answer is in Appendix B.

Use the Excel function +LN(numbe

r) to calculate d1 and d2.

Use the Excel function +EXP(number) in equations where “e”

is u

sed.

Use the Excel function

+

NORMSDIST(number)

to calculate the option price.

Watch your usage of parentheses carefully! This is a good test of your

basic Excel skills.

#3

See #1

.

Homework Problems are assigned from the “Questions and Problems” section at the end of the

textbook chapters read each week. They MUST be solved in an Excel worksheet and

submitted. Do not just enter numeric answers or type Excel formulas as comments in the cells;

actually solve the problems in the Excel worksheet.

I will attach an example of an acceptable solution using an Excel worksheet

Required Textbook(s) and Additional Materials:

Course: Investment Management

9781260203202

Fundamentals of Investments

Jordan, Bradford D./ Miller, Thomas W. Jr./ Dolvin, Steven D.

8th / McGraw-Hill

Required / New

Chapter 14 Problems 7 & 9 (p. 487-88)

Chapter 15 Problems 4 & 5 (p. 525)

Chapter 16 Problems 1 & 3 (p. 561)

Week 6 Homework Tips

Chapter 14

#7. Use equation 14.3 on p. 476.

#9. Use equation 14.6 on p. 477.

Chapter 15

#4 Remember that each contract relates to 100 shares stock.

#5 Options investment worth does not include cost per share of option.

Chapter 16

#1 Use 365 days per year. Solve this one correctly in an Excel model based on

Example 16.2 on p. 541, and you can re-use the model in problems #2, #3, and #4. The correct

answer is in Appendix B.

Use the Excel function +LN(number) to calculate d1 and d2.

Use the Excel function +EXP(number) in equations where “e” is used.

Use the Excel function +NORMSDIST(number) to calculate the option price.

Watch your usage of parentheses carefully! This is a good test of your basic Excel skills.

#3 See #1.