Valuation In Financial Markets - Spring 2007

The time is finally upon us.

Here is the cover sheet for the final exam that explains all of the logistics and instructions: Instruction Sheet

Here is the final exam file: Final Exam

And the Excel file that contains the exhibits for questions 1, 3 and 4: Exhibits

Best of luck - on the exam and this summer!!

I really enjoyed working with you all and look forward to seeing you in the fall.

Sorry for the delay, but here are two example solutions for Problem Set #2.

These are actual problem sets submitted by two of your colleagues - I have inserted clarifying notations if/where appropriate.

Please note that I allowed a great deal of latitude in question 4a, penalizing only for obvious errors.

Back to grading...

Example Solution #1

Example Solution #2

The average score was approximately 85.5%.

I can't seem to find my copy of Bob Conroy's note on the Capital Cash Flow method to post.

So... we'll just talk about it in class.

I will have office hours on Monday, May 7th from 8:30am to 10:30am.

As I have a very small (and crowded) office (actually, it's not mine), I have reserved Room 290 in the Classroom Building and will be working there during the time noted above.

There will be an open Q&A Session in Classroom 290 on Monday, April 30th from 1:20pm to as late as 2:40pm and an open Q&A Session in Classroom 280 on Tuesday, May 1st from 1:20pm to as late as 2:40pm.

Please note that I will not be making any prepared remarks, nor will any new material be introduced or discussed.

Here is the second problem set (not counting the Module 1 Problem Set):

Valuation Problem Set #2

In addition, here are the exhibits (i.e., the data):

Problem Set #2 Template

Please note that this will be due in hardcopy form no later than 8:00 am on Monday, April 30th.

There will be an open Q&A Session in Classroom 290 on Tuesday, April 24th from 1:20pm to as late as 2:40pm and an open Q&A Session in Classroom 290 on Friday, April 27th from 1:20pm to as late as 2:40pm.

Please note that I will not be making any prepared remarks, nor will any new material be introduced or discussed. Furthermore, we will not be discussing the problem set in any manner.

Here are suggested solutions for the Module 1 Problem Set:

Module 1 Suggested Solutions

There will be an open Q&A Session in Classroom 170 on Friday, April 20th from 8:30am to as late as 10:00am.

Please note that I will not be making any prepared remarks, nor will any new material be introduced or discussed.

Here is the second problem set covering Module 1.

Valuation Problem Set for Module 1

Please note that this will be due in hardcopy form no later than 8:00 am on Monday, April 16th.

Here are suggested solutions for Problem Set #1:

PS1 Suggested Solutions

Please note that, although Microsoft Excel may have built-in functions that often accomplish what otherwise take several steps and formulas, you should know and understand the calculations that Excel is running in the background.

Also, whenever relying upon Excel formulas, please make sure that you carefully review (e.g., via the Help menu) the assumptions and inputs incorporated into the Excel formula to avoid unintended and unanticipated results.

Here is an optional tutorial that takes you through the basics of option
contracts. It gives you the chance to work through how the contracts
work individually and in combination (e.g. owning a call in combination
with some other asset).

http://it.darden.virginia.edu/FinancialOptions

NOTE: This file will be posted on or shortly after 1:10pm, Tuesday March 27th.

Here is the first problem set:

Valuation Problem Set #1

Please note that this will be due in hardcopy form no later than 8:00 am on Monday, April 2nd.

Please note that question #5 for Session 13 in the coursepacket is incorrect and there is a typo for question #2 for Session 14.

The corrected study questions are found here and here on the course website.