Ms. Zheng Zhang Ph.D Defense
Optimal Portfolio and Consumption with Transaction Costs
Time: 1:00-2:30 PM
Place: 315 Armstrong Hall
***Everybody is welcome for the first half. In the second
half the committee members ask questions. The second half
is open only to the committee members.
An option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price (the strike). The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction. In this talk, we discuss basic knowledge of options (mainly the European call and put options), and the one-period Binomial Option Pricing model.