please see attachments. The assignment needs to have a Memo and an Excel spreadsheet to meet requirements. There are examples of each attached.
Calculating Beta Project 2: Calculating Black Scholes .In the notes, Example 5, page 23 has the following parameters: S= 50; X= 45; Rf = 6%, 2= 20%; and T= 3 months. Find the value of the call using an excel spread sheet. It should equal $7.62. 2.Using Example 5 as the base case, find the value of the call for a range of stock prices, say from $5 to $300 in increments of $5. Plot these values in excel. Comment on how the value approaches certain limits, i.e. when the option is deep in the money, what is the limit on the value of the option. What happens to the time value of the option? 3.Using Example 5 as the base case, find the value of the call for a range of volatilities. Plot these values in excel. I would suggest going from 5% to 300%. 4.Using Example 5 as the base case, find the value of the call for a range of exercise prices say from $5 to $100 in increments of $5. Plot these values in excel. 5.Using Example 5 as the base case, find the value of the call for a range of maturities say from 1 month to 12 months. Plot these values in excel. 6.Provide some narrative on these factors. Which factor seems to provide the most impact? Why? 7.Pick a firm that has traded options.[footnoteRef:1] Include some values as an attachment. Comment on the volume. Which option seems to be the most traded? Why? [1: Where do you find options? Try Finra.org. From the landing page, click investors. From there, click market data. On the side panel, click “Equities and Options.” Type a ticker symbol for the firm, and from there you will get tabs for data, include options prices. You can also you Yahoo finance, and other sites for the data.] BAFN 670Page 1 Glossary of Comments: 670 Do’s and Don’ts: 1. Times Roman font. Either 10 or 12 point. 2. Double justified margins. 3. Memo format. See below. 4. Follow directions. Do not use a different format than what I have attached as an example. In other 5. Do not misspell the professor’s name. 6. Punctuation comes before footnotes and quotation marks. For example .” or .1 7. Avoid the use of contractions. 8. Use page numbers. 9. A common mistake is to end a sentence with a preposition. Try to avoid this. You will probably have to restructure your sentence. 10. Avoid starting a sentence with a number. If you do start with a number, write it out. Example, “Twenty-five years ago.…” Or for example, if you are going to start the sentence with “$400,000 is my total investment,” you need to write out “Four-hundred thousand dollars.” 11. Avoid writing in a passive tense. For example instead of saying, “The stocks that were selected include ,” perhaps say, “the selected stocks include.” 12. Use italics to highlight publications such as the Wall Street Journal. Use italics to highlight the company name. 13. Include footnotes. 14. Use headers to break up the sections. 15. Keep deadlines. 16. I cannot stress this enough—the first sentence sets the tone. It should be more than, “This paper will discuss… “ The following is a glossary of comments that will be placed on the papers to indicate errors. If you see a “❸”, refer to this glossary to see what if means. ❶ Avoid the over use of “I.” For example “I hope,” “I picked,” “I wanted,” “I selected.” ❷ Justify both sides. ❸ Label tables. Typically it goes above the table.[footnoteRef:1] Label for figures usually goes below. [1: https://proofreadmydocument.com.au/writing-tips/label-tables-figures/] ❹ Appropriate attachments ❺ Better format ❻ Use section headers to help the reader—think of headers as the equivalent of a chapter in a book. Imagine reading a book with not chapters. ❼ Shorter paragraphs ❽ Follow format. ❾ Match fonts/times roman font ❿ Under page layout, click page setup, under layout click different first page. ⓫ Do not start a sentence with a number. Write out the number. Instead of “1975 was a great year.” You would say, “Nineteen seventy-five was a great year.” ⓬ Page numbers ⓭ Use a dash to connect a number to year/s. ⓮ I like the use of italics when referring to a specific table item. ⓯ Executive summaries should give you the headline for the paper and not a narrative or present an outline of what is to come. ⓰ Use of footnotes[footnoteRef:2][footnoteRef:3][footnoteRef:4] [2: Patterson, p.75] [3: Ibid, ---this means that you are quoting the same source and the same page] [4: Id. p.78—means that you are quoting the same source, different page.] ⓱ For articles, cut and paste the article in Word. Then you can format it. ⓲ Attachments should be numbered. No orphan exhibits, attachments, etc. ⓳ Avoid contractions ⓴ Not using a space between paragraphs 21. Just a reminder, the first sentence sets the tone. It should be more than, “This paper will discuss… “ Memorandum [footnoteRef:5] [5: Much of this form was taken from "Memorandums in the Classroom," by Joseph Newman and John M. Wachowicz, Journal of Financial Education (Fall 1989). The format is similar to that used by the FDIC for internal communications.] To:Executive Trainees From:Dr. d. l. T., Training Program Coordinator Date:January 1, 2018 Subject:Memorandum Template Cover memorandums, sometimes called “executive summaries,” are very common in business. Their purpose is to give busy managers a quick summary of an attached, usually lengthy, report or article. If the memorandum is properly written, a busy executive can read the memorandum and get a complete understanding of the important contents of an attached report or article. Memorandums usually consist of a few paragraphs, and for the most part are less than two pages long. Memorandums are also used to communicate important information without an attached report or article. In fact, they are the principle means by which business executives in large companies communicate with each other internally. External communication, where executives are communicating with someone outside of their organization, is done using a letter format. This should make sense to you as it is obviously superfluous for executives within the same company to address correspondence to one another when the material will be sent to another office within the same building or through the use of company mail pouches. Hopefully, you now understand why I have asked you to write a report that uses a memorandum format. Although term papers and case analyses are important assignments, most of you will not be asked to write lengthy reports at your place of employment. More than likely, however, you will be asked to write a “memo.” Good luck. Notice that “memos” are single spaced. I require double justified margins with 10-12 point Times Roman font. © Cris de la Torre 2018Page 1