Financial Math Final Exam Study Guide
Final exam: Thursday, May 3, 2018, from 4:00 to 7:00 pm. Location: The location of your final exam will be available near the end of the semester. IMPORTANT NOTE: Since the details of the Math 135 syllabus sometimes evolve from year to year, you may find that a few of these review problems aren't similar to problems covered this semester because some subtopic in some section of the book has been omitted in this semester's syllabus.
Final Exam Study Tips
You should certainly practice doing the problems that are related to the material covered in the problems in this semester's official homework list. THE FINAL EXAM COVERS THE WHOLE COURSE.
Besides the material here, you have many other resources available to help you review. Review material for the final 135 exam. Old final 135 exams.
Unless otherwise stated in the examination question, assume:. The market is frictionless. There are no taxes, transaction costs, bid/ask spreads or restrictions on short sales. All securities are perfectly divisible. Trading does not affect prices. Information is available to all investors simultaneously. Every investor acts rationally and there are no arbitrage opportunities.
The risk-free interest rate is constant. The notation is the same as used in Derivatives Markets, by Robert L. When using the normal distribution calculator, values should be entered with five decimal places. Use all five decimal places from the result in subsequent calculations. In Derivatives Markets, Pr(Z 0. The distribution function of Y is ln( x) − m FY ( x) = N , v x 0.
Also, 1 k EY = exp km + k 2v 2 , 2 which is the same as the moment-generating function of the random variable ln(Y) evaluated at the value k.