The Discobolus is one of the most recognisable and influential artistic pieces to emerge from Ancient Greece. The Discobolus was a bronze sculptured depicting an athlete throwing a discus and was created by prolific Greek artist Myron of Eleutherae (Harris & Zucker 2012). Although a precise date of creation is unknown, it is widely theorised that the sculpture was created between 450 and 460 BCE (Harris & Zucker 2012). Myron’s original Discobolus no longer exists, with evidence indicating that it
This chapter will mainly discuss about Black Scholes model, which is applied in this research. The history of Black Scholes will be introduced followed by Geometric Brownian motion equation history. Besides these two, we will also explain briefly about financial application of gold share price. 2.2 Gold Share Price Shahriar Shafiee (2010) is concerned about global gold market and gold price forecasting. He stated that in practice, the price and production behavior of gold differs from most
Chapter 1: Meriwether This chapter introduces us to the central character of the book, John Meriwether, the book revolves around his actions at the Wall Street. The book opens with the setting of 1979 when John Meriwether aka J.M. was working at Salomon Brothers. There he encounters the case of Eckstein, a securities dealer who traded in treasury bills and made profits by the arbitrage of the bonds. By buying the futures and selling the bills and when the prices converged he made fortunes. But recently
PV(EX) is calculated by discounting at the risk-free interest rate r_f t= Number of periods to exercise date P=Price of the stock now σ=Standard deviation per period of (continuously compounded) rate of return The principal assumption behind Black-Scholes model is that returns are of lognormal distribution; besides, there are a number of other assumptions which may lead to wrong results for critical cases. (Kodukula & Papudesu, 2006)
but rather receive a dividend which only can be received if the directors declare one. So my interpretation is that shareholders no not have any right of control over the firm’s assets. Then Lynn A. Stout goes on to talk about Fischer Black and Myron Scholes famous paper which looks at the options theory from this I can presume that its theory is that is the company is in debt the debtholders have the right to the companies cash where as the shareholders don’t. So the theory behind the whole argument
The capital asset pricing model (CAPM) introduced by Jack Treynor, William Sharpe, John Lintner and Jan Mossin in 1972[2]is an important method to predict the risk and return in assets. Nowadays, the CAPM is still widely used in applications as it is a so simple and attractive tool. However it has the problems in many circumstances and we need some other extended and available models to evaluate the risk and return of assets. We know that CAPM is a model used to price an individual security or portfolio
the indirect implication of Crony Capitalism, are perhaps greater than those initially perceived. Long-Term Capital Management was a hedge fund company founded by John Meriwether in 1994, in cooperation with Nobel Prize in economics winners Myron Scholes and Robert Merton who resided on its board.[1] Hedge funds are essentially large, unregulated, private investment pools for wealthy individuals and institutions. They are not limited by the portfolio composition and leverage (how much they borrow