'Riccardo colacito' presentation slideshows

Futures Markets

654 views • 51 slides

Buying on Margin and Short Sales

Buying on Margin and Short Sales. Riccardo Colacito. Roadmap. Buying on margin Short Sales. Buying on Margin. The investor borrows part of the purchase price of the stock from a broker Margin : portion of purchase price contributed by the investor. Margin Trading - Initial Conditions.

610 views • 15 slides

Options Pricing: addon

Options Pricing: addon. Riccardo Colacito. Setup of the problem. Stock price today is $100 Two future dates At each date Stock price can go up by 10% Stock price can go down by 5% Call strike price is $110 Risk free rate for each period is 5%.

265 views • 13 slides

Asset Allocation across risky and risk-free portfolios

Asset Allocation across risky and risk-free portfolios. Riccardo Colacito. Allocating Capital Between Risky & Risk-Free Assets. Possible to split investment funds between safe and risky assets Risk free asset: T-bills Risky asset: stock (or a portfolio). Example. r f = 7%. s f = 0%.

477 views • 10 slides