Explain the difference between how the stock dividend and how coupon payments is treated contained by binomial pricing.?
The fundamental formula for binomial pricing is identical between stock pick and bond option. However, how to treat the dividend and coupon payments are different.Explain the difference between the two.
Answers:
As I couched your question you necessitate a good book on pricing derivatives.
Try this:
Hull , John - Options, Futures and Other Derivative Securities (5nd Ed.)
Since direct links are not make the acquaintance of here, you should open www.rapidshared.org -> choose e-books directory -> hunt for 'derivatives' -> get the direct association and spent couple of minutes reading the demanded chapters.
I want to capture started surrounded by stock trading but i do not know where on earth to switch on.?
Could you reccomend any books or things that would help me think through stock trading?Answers:
I've been studing the open market game for in the order of a year now, i didn't know anything a year ago, I havent invested anything yet, i've in recent times been practicing contained by stock simulators like stocktrak.com for something like 2 months now, im jubilant i've made almost a 7% in my simulations (im beaming with that since i am a rookie), I guess I need to do closely more reading, studing and practicing before I invest a single dollar for existing. I think presently I understand the market much better.
Since I am in a similar position as you are, simply 1 year ahead studing :) , I would strongly recommend you to start by studing Profr. Peter Navarro's material. First I studied his audio course "Big picture investing", and read his books "when is raining within Brazil buy Starbucks", "when the markets move will you be all set?" and now i'm reading his most recent book "the capably timed strategy", for me it was great to start beside the audio course, since he explains the basics to become conscious the market, and it comes next to a very didactic printed course guide. Profr. Navarro have been a great mentor for me, I don't think near are other books as good as this for a beginer, and belive me, i've done my research and be reading a lot!! after the audio course i be able to take and take more "juice" from his books and other books that I enjoy read, I recommend you to do the same point.
Regarding the Can Slim system teached by IBD's Bill O'Neal, I think he is a valid master, his investing approach is great and relatively easy to follow if you use the investing tools on investors bussiness day by day and do your research homework every day, truly, I just took the Can Slim Level I Seminar some weeks ago, and I am already subscribed for the horizontal II seminar to be held at the end of this month, BUT, if i hadn't studied Profr. Navarro's fabric before, I am shure I would understanded much smaller quantity from the can slim seminar, so I recomend you to start with Profr. Peter Navarro's objects, its great material and have been abundantly of help for me.
You can find Profr. Navarro's audio courses and books at barnes and lord, either contained by the book store or online, is not an expensive material, i would own pay 10 times its price, its worth much more.
And, once you start to study, the research curve never ends!! start with Prof. Navarro, until that time you buy any material much more expensive and not worth its price, belive me i've done it :(..im shure you will thank me.
Good luck!
Other Answers:
Begin next to your personal finances, do you have a budget? do away with debt (except mortgage, car payments). Make sure you already hold stable finances, a savings plan, retirement plan, college pre-pay plan, an emergency fund within place.
Now you are ready, dance and read "how to make money surrounded by stocks" by O'neill, "up and down wall street," "Practical Speculation" and you will be ready to walk. bobbrinker.com reading list on his site
raylucia.com interesting financial website and radio show
When does the grease ETF, United States Oil Fund LP (AMEX: USO) inaugurate trading?
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Yes supposed to start april 3, but nothing on the other hand as of april 6 as far as i can tell. any thinking?
Other Answers:
It's suppose to launch April 3, 2006.
what is outside edge trading within stocks?
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Margin trading is buying stock with someone else's money. Typically, it works approaching this.
You put $1000 in a broker's border account. You can buy up to $1500 contained by stocks. The extra $500 (50% of your amount) is being loaned to you by the broker. And yes, you will settle interest on that loan.
The trick is picking stocks that will outperform the interest rate. If the stock goes up, you can greatly increase your income. If it go down, you lose more also. Plus, if you lose too much, you will have to get rid of off some of the stock (at a loss) contained by order to hang on to yourself with individual a certain amount of debt (typically 50%). This is specified as a margin phone up.
Having tried this, it is tricky. You can make greatly and you can lose a lot. I traded on outside edge for about a year and did both.
Other Answers:
It is munificent of like buying on credit. You put up a fragment of the cost and your broker finances the rest. Problem is if the stock drops the broker will issue a "margin call" meaning you hold to come up with more money - very soon.
Margin trading is borrowing part of the amount indispensable to purchase the stock. It allows one to leverage gains (and losses). For example, 1000 shares of xyx at $10 a share have a total cost of $10,000. But buying on 50% margin, you own to invest only $5000 of your own money and borrow the rest from your stock broker. So if the helpfulness rises to $11 a share the next afternoon, you have made $1000 on your $5000 instead of $1000 on your $10,000 investment.
However, if the price drops, you may be subject to a side-line call. That medium your stock broker will request that you deposit more money into your account to protect his nouns to you. If you do not deposit the necessary amount, your holding will be sold.
During the crash of 1929 outside edge investing was blamed for much of the drop during the first few days as accounts be liquidated en mass at doesn`t matter what price they would fetch. And when the sale price did not cover the amount of the loan, the stock brokers go after other assets such as homes.
Note: your broker will charge you interest on the amount you borrow.
Where can I buy J-Reits (Japan Real Estate Investment Trusts) from?
Answers:
It appears that JREITS can only be purchased through the Tokyo Stock Exchange. However, you may want to look at ORIX Corp. (symbol is IX) traded on the New York Stock Exchange.
What is the best path to dance contained by BId and Ask within Investing?
Here are some questions that I hold:A. Here is my situation for stock:
Bid - 7.78
Ask - 9.98
Last - 9.80
How is that possible that someone sells $9.98 and someone is simply willing to remuneration $7.78? Why does the bid matter if peddler sells it for 9.98?
B. What is "last" shows on the stock quote?
C. What is a better process to go - Limit or Market command. But with Market proclaim isn't seller can put any price he desires? Sounds kinda unfair for flea market order.
Thanks for adjectives your help !!
Answers:
That's a really all-embracing spread. It might not be a very fluid stock so that's why the spread is higher. If here was more interest, consequently the spread would close up a little bit. The bid matter because that's what you'll get if you cross the flea market and sell stock.
Last is the second price that an actual trade occured at. Since the last is much closer to the ask, it's possible that someone did a great deal of selling and new bidders haven't have time to put in their bids however.
Market order technique the broker can use any price he wants, supposedly, but it's in their best interests not to supply too bad of a price if not the broker will lose future business, so largely, they won't rip you off more than a few cents bad the spread. Limit orders really aren't that much better for abiding money because you just enjoy to wait until your price hits the other side anyway. It's more a convenience facet so that you get a undisputed price for sure and don't have to monitor the market adjectives the time.
Other Answers:
The Ask is the amount a person who owns the stock is liable to sell for, and the Bid is how much a soul who wants to buy the stock is of a mind to pay. These two values will almost never equal on a stock quote - construe of it as two sides negotiating to an eventual settlement. The "spread" between the ask and bid is usually closer for stocks next to more volume.
B. Last is the price a stock was traded later at.
C. Limit orders are safer for buyers, as they can specify what price they want to buy at, but must hang around until that price is reached. Market advice simply buy the required amount of shares at the current going rate; its riskier but you'll get the shares you want.
Well the first item you should know is how the bid and ask prices are determined.
For every stock that is exchange traded at hand are atleast two dealers aka Market Makers. Each salesperson has a price they want to buy and get rid of shares at. Because dealers don't product money by buying and holding stock, they make it buy buying at one price and selling it for a highly developed price and to cut their risk they do this as fast as possible. Generally a seller might want to buy at say 9.31(Bid price) and flog at 9.34(Ask price). The dealer offering the best price make the bid or ask price (so investors always get hold of the best current price) the dealers try to out bid and out ask respectively other so they can do the most business, because the 3 cent diffrence is not much but if one dealer buy and sell 1 millions shares thats $30,000. So their gain is made almost risk free, and in return they guarantee liquidity for investors.
Also in that are sizes to bid and ask prices, they represent how much in hundreds of shares are available at that price. example a bid size might be 5 medium at the current bid price 500 shares are available, so if you sold 600 the price might drop for the last 100 shares, and they will be sold lower. conversly if an Ask size is 5, and you bought 600, the end 100 shares might buy in at a price highly developed than the current ask price, because the ask price might rise.
So...
A) should get answer from above
B) Last is simply the last price the stock traded at, most of the time the ending price will either be the Bid or the Ask price. But let say that the Bid = 5.00 Ask = 5.02 if some one buys they will buy at 5.02 so the ending will be 5.02, although the ask may rise to say 5.03 the end will be 5.02 still, because it was the closing price that the stock traded at.
C) Limit or market are both equally dutiful but it depends what you want to do. using a market writ you cannot get ripped bad by the market maker's or dealer's, they already own prices set, with sizes set. Market charge guarantee that you will buy in or flog out, while a limit is not guaranteed because the price may never move inside the limit price.
several other answers cover most of what you required. don't agree with adjectives of it, but that is duration.
if you are interested in buying this stock, palpably a low floating trade by appointment stock then i would start near a bid slightly under $8.00 and consent to it sit for a few days if need be. consequently slowly move it up until you get some accomplishment. try buying a third to half of your desired position and see what happen. many times some entertainment. brings out the sellers and you might know how to fill the go together of your order down the road. a short time ago be aware that it is usually harder to get out afterwards in.
I own 108 shares of prudential financial. What is it worth?
prudential.equiserve.comAnswers:
PRU 76.69
Other Answers:
Go online to "stock quotes" and find out what the stock exchange symbol is for Prudential Financial. It should be an abbreviation of several post like "PrFi". You can type the leap in at the stock quotes page and it should transmit you how much each share is going for that daylight. Multiply the per share value by 108 and that's what the total advantage is TODAY. It changes everyday up, down or steady. If you sold your shares the broker would pinch a percentage too.
Today's Quote for PRU:
76.69 (up $1.08)
So if you have 108 shares, afterwards the value of it is: $8,282.52
Source(s):
http://finance.yahoo.com/q?s=PRU
It is worth anything someone is willing to compensate for it.
PRU closed today (4/4/06) at $76.69 per share thus your 108 shares are worth about $8282. To deal in those share, you will have to rate a commission.
Source(s):
Yahoo! Finance
Abour $80 in actual money
$74.82 a share.
when do mutual fund prices go and get updated?
Answers:
It depends upon the fund. Some price hourly, however 99% of firms price their funds at the close of business. When they release the information is specific to the firm and when it appears is specific to the data provider. You should presume that any price you see be the close of business the prior day, unless you specifically know otherwise. Since funds are not designed to daytrade and since funds enjoy strange redemption rules based upon the phrasing of the Investment Company Act, it doesn't situation much because you are pretty much required to sell or buy blind.
If I buy at midday tomorrow, it will be at the next ceremonial price, which is usually close of business and will happen on the following daytime. So if the price tonight is 10.13, the real but undisclosed price tomorrow at lunchtime is 10.12 but finishes at 10.14, then I will settle 10.14 the day after tomorrow at the vent of business probably but at some point in the afternoon.
Closed end funds lone update once per week, usually on Fridays.
Other Answers:
Mutual fund prices are available in two NASDAQ feed. The first feed used by Yahoo and most other services contains roughly speaking 5% errors and missing prices and is available about 17:15 Eastern time.
In 2001, NASDAQ introduced a second reporting session from 18:20 to 19:00 Eastern for fund companies to provide slow price updates to the electronic media carrying fund information.
Of the major retail fund price distributors merely Investors FastTrack holds for the second feed which averages 2% errors and missing information. Additionally, http://www.fasttrack.net foot corrects and provides a proprietary morning feed to thousands subscribers. This nurture reduces errors to lower than 0.3%
Each one is a little different, but typically for US funds it is about 9:00 PM or so, Eastern Time. I know that it is not similar to stocks, that get updated by the second. Normally, because they own a great deal of stocks and securities, etc., it takes them a while to determine what their unknown value is. This is especially true if they hold foreign holdings.
If I am not a citizen of USA, can I invest contained by US bonds and mutual funds?
Answers:
Sure,
Certain state issued bonds and municipal bonds however have restrictions.
Other Answers:
ring up this number ask for jeff 832-367-0245
YES SEND THE CASH TO MEE AND WE TALK!
Yes, at almost any bank or brokerage firm.
You guess the U.S. is going to miss out on making some money out of ANYONE? I think not... for some things it matter that you are or aren't a U.S. citizen, and for others, they don't care...to their convenience unsurprisingly.
You can buy certain low height state municipal bonds and cd's. However you are not entitled to legitimately own certain assets close to mutual funds and stocks due to tax reason and understandable protection risk.
YOU MEAN YOU ARE NOT LEGALLY TO LIVE HERE IN U.S.A. THAT IS NOT A PROBLEM FOR THE GOVERMENT NOR THE BANKS TO SELL YOU U.S. BONDS BECAUSE BUSINESS IS BUSINESS.
how various of the dow 30 stocks finished first quarter next to a gain?
Answers:
Losers: GE,JNJ,C,MMM,AIG,MO,INTC
Gainers:
CAT,DIS,HON,HPQ,
VZ,MRK,BA,GM,XOM,
PFE,JPM,KO,HD,UTX,
MSFT,AA,AXP,MCD,
WMT,IBM,DD,PG
Calculation done considering reinvestment of dividends in brand new shares.
Other Answers:
Last quarter earnings per share is positive for adjectives but GM. So 29 of the 30 posted positive earnings.
Do you know anything something like a Blog made by Columbia University alumnis, who post their stock piks at the network?
Answers:
http://www.bcheights.com/user/index.cfm?event=displayRegistrationPrompt&thereferer=http%3A//media.www.bcheights.com/media/storage/paper144/news/2000/11/14/Marketplace/Pick-A.Stock.Watch.It.Grow-9049.shtml%3Fsourcedomain%3Dwww.bcheights.com%26MIIHost%3Dmedia.collegepublisher.com
i tried :(
Iceland currency trading?
Anyone out there from ICELAND? Trying to find products that trade ISK (Krona) currencies. Options, futures, accounts, etc. Can't see anything offered for trading this currecny anywhere. ThanksAnswers:
http://www.gocurrency.com/currency-trading.htm
any one know the black -scholes formula? is it adjectives?
Answers:
http://en.wikipedia.org/wiki/Black-Scholes
The formula itself is pretty complex. You can find a black box calculation that will do it for you as long as you enter the variables.
Here's one.
http://www.hoadley.net/options/optiongraphs.aspx?
The variables.
S - the underlying attraction of the asset (i.e. current stock price)
K - the exercise or strike price (i.e. the contract price you can purchase the asset for in the future)
T - the time the exercise expires (i.e. how long do you hold to exercise)
r - the interest rate
sigma - the volatility of the asset (i.e. the risk of the asset)
Other Answers:
BLACK AND SCHOLES formula is used to evaluate the price for OPTION PRICING MODEL.
The site is : http://bradley.bradley.edu/~arr/bsm/model.html
Of course it is useful. However, it is completely hard to grasp, as difficult as the integral and derivatives.
Think give or take a few it, Professor Black ( degree surrounded by physics and Phd. applied mathematics, Harvard university, Nobel prize of economics as one with Myron Scholes).
Good luck within the amazing world of options, perharps the 8th wonder of the financial world.
The big problem near the formula is to calculate the sigma or volatility of the underline asset. Of course you can use historical data but the true volatility can amend really easy.
I would seriously try-out any trading strategy using the B-S. You will be trading against institutional investors with adjectives available information, including a computer that updates every single possible option BS equation within real-time.
Be careful.
I hold some serious issues with the agency that the BS model works. If you look at the derivation, it basically regresses to a non-linear estimate of the substitute price. The difficulty in identify the expected volatility not withstanding, the model is not useful for option with readiness dates longer than influence 90 days (and it is completely ineffective at valuing American options). If you are using it for material option valuation or executive stock option, you will have some serious issues next to getting a reasonable answer. My insist on, switch to a lattice model resembling the binomial pricing model or use an iterative simulation technique such as Monte Carlo.
Binomial is effective, because expected volatility and expected excercise date is an output of the model...not an input. So it can be used to efficacy short and long term european and american option. Monte Carlo is really helpful if you own ample historical data to build a probability distribution. If you know the parameter needed to build the probability distributions of financial statement line-items, you can input those into excel and it will run millions and millions of iternations, giving you a range of outputs similar to a framework model. Be warned, though. No situation which model you use, the old axiom still applies: Garbage In Garbage Out.
England pounds verbs to America money what is the difference?
money transfer convenienceAnswers:
As of Tuesday April 4th 2:03PM (GMT+9)
1 pound = 1.7548 USD
Other Answers:
lb1 =approx $1.75
and we dont use the euro i should know as i live in th uk we use the ENGLISH POUND
Source(s):
pound is great
I'm pretty sure its close to the Euro value, which is $1 American to nearly $1.30 Euro
hedging srategies contained by stocks open market?
Answers:
There innumerable hedging strategies.
I will describe two.
1. Buy stock in a company that you believe will outperform the marketplace in nonspecific and sell short stock contained by a broad market index. If the stock souk falls, you will be protected against the fall if within fact the marketplace in nonspecific falls faster than the stock that you have purchased.
2. Buy stock contained by a company in which stock option are traded
and a) sell an contained by the money call at a premium b) flog an out of the money call c) buy an within the money put d) buy an out of the money put
a) by selling an in the money phone call you are pocketing the premium price of the call. If the stock falls below the beckon price at or before the expiration date, you enjoy pocketed the amount of the call and you still own the stock and you enjoy protected yourself down to the price of the in the money give the name. If the price of the stock goes up, you do not gain that increase, the phone holder does
b) with an out of the money appointment you will gain the price increase upto the call price plus the premium price of the send for. Beyond that the call holder will gain the increase.
c) next to an in the money put you will be completely protected against a dribble in the price of the stock but you will remuneration a premium for that protection. If the price of the stock rises you will gain all the increase minus the cost of the put.
d) impossible to tell apart as above but you will not be completely protected only to a certain extent, but it will not cost so much.