Mathematical Economics

earned by investor who buys the bond today at the market price, assuming that the bond will be held until maturity.. An annual

• Long-term loans – repayment methods • Equal principal payments per time period • Equal total payments per time period... • Loan amount – the size or value of

• The method applied to determine the value of bills depends on whether the bill price is based on the rate of return (r) or the rate of discount (d).. • Bond prices are

• If the bond's price is lower than its par value, the bond will sell at a discount because its interest rate is lower than current prevailing interest

• A forward contract is an agreement between two parties in which one of the parties assumes a long position (the other party assumes a short position) and obliges to

• Find the fair value of an European call option using the incoherent binomial option tree if the underlying asset pays dividend of 2 PLN in half a month... Option strategies

• A forward contract is an agreement between two parties in which one of the parties assumes a long position (the other party assumes a short position) and obliges to

• Find the fair value of an European call option using the incoherent binomial option tree if the underlying asset pays dividend of 2 PLN in half a month.. Option strategies