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Illustrate the fundamental characteristics of the financial option contract, stressing those which make options fundamentally different from other financial instruments, like forward or futures contracts.
- Illustrate the fundamental characteristics of the financial option contract, stressing those which make options fundamentally different from other financial instruments, like forward or futures contracts.
- In the framework of hedging strategies with futures contracts, introduce the notion of "cross hedging". Then, sketch the steps to calculate the "minimum variance hedge ratio".
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
