Good link on LTCM

http://www.faculty.econ.nwu.edu/faculty/witte/mb/handouts/ltcm.html

read what Cramer says....sort of what we talked about in class. Except thatthey were not good. I disagree.

Ripken Baseball

Jim Arnold lost his voice and was forced to cancel his presentation on Friday. He has graciously agreed to reschedule it for 1:30 on Monday May 2 in Murphy AUD C.

It will be good! Hope to see many of you there!

Power Vista Link

link to the Power Vista (for 5 week class)
http://www.nypa.gov/vc/niagara.htm

Ripken representative to speak

This Friday (April 29th) at 1:30 in Murphy Aud C, Jim Arnold of Ripken management (yes CAl Ripken;s company!) is speaking on the business of Minor League Baseball. It should be fascinating. I definitely recommend attending.

While some of the talk will be more geared towards sports marketing, I know he has also worked on investor presentations, financing, and acquisitions so finance will be well represented.

Jim is a 2004 MBA (you may know him as "Kentucky").

Salary.com

Salary.com has some advice for those on the job market. It is sort of biased, not bad. It lagrley deals with negotiation of a salary etc.

AOL Find a Job--7 Salary Myths for the Classs of 2005

5 week class "stuff"

I have not looked at the exams yet :) relax....I am sure you did better than you think.

Just to make sure we are on the same page. This Friday we will do BOTH Springfield Power and Adelphia. On Saturday we will do LTCM. Then on Next Friday we will the Nat West Case.

Also here is the link I promised to the Shake Sound Board.

have a good week!

From the Dean on finals

Mike Fischer just sent the following. It might interest you.

"Reading Days

Thursday, May 5th and Sunday, May 8th are designated “Reading” (or “non-exam”) Days. No undergraduate exams, classes, or other mandatory activities are to take place on these days (optional review sessions are fine).

Exam Conflicts

I know that you will be considerate of our students’ needs if they come to you with legitimate exam conflicts, particularly if the conflict was caused by a change in the time of your exam (including, but not limited to, it being scheduled at a “special” final exam time). It is our long-standing practice that students should not have to take more than two final exams in a given day. I hope that you will be understanding if a student comes to you with such a situation and asks for relief from having three exams in a day.

Final Grades

Final grades for degree candidates (undergraduate and graduate) are due to be submitted not later than 10:00 AM on Thursday, May 12^th. Final grades for all other students (undergraduate and graduate) are due to be submitted not later than 10 AM on Monday, May 16th. It is imperative that we comply with these deadlines.

Incomplete Grades

An Incomplete Grade Record form must be submitted to the Registrar’s office for each student for whom an “I” grade is submitted. Janet and Barb have copies of this form, if you need them. Please note, also, that the “I” grades must be made up before the beginning of the third week prior to the end of the following academic semester. The use of an “IP” grade is not a substitute for an “I” grade. The “IP” grade is reserved for research and other situations where the course work is planned to extend for more than one semester (e.g., a scheduled 2-semester course)."

Extra Credit Opportunity

For both the MBA 610 final (Regular and 5 week classes) and the 422 final, there will be an extra credit offer:

submit multiple choice problems (must have a through e as potential answers with correct answer marked and a quick explanation given).

If your problem is selected for the test, you

1. Get it right--or at least hopefully get it right ;)
2. Get 2 points added to your test.

You can submit as many questions as you want. (never cap an incentive based package :) )

JFQA Forthcoming Articles

JFQA Forthcoming Articles

It is too short for a FinanceProfessorblog entry, but given we just were talking about conditions for market efficiency this weekend,I figured I could put it here.

From an upcoming JFQA (Journal of Financial and Quantitative Analysis).

"Short Sale Constraints, Differences of Opinion, and Overvaluation
Rodney D. Boehme, Bartley R. Danielsen, and Sorin M. Sorescu
Miller (1977) hypothesizes that dispersion of investor opinion in the presence of short-sale constraints leads to stock price overvaluation. However, previous empirical tests of Miller’s hypothesis have examined the valuation effects of only one of these two necessary conditions. We examine the valuation effects of the interaction between differences of opinion and short sale constraints. We find robust evidence of significant overvaluation for stocks that are subject to both conditions simultaneously. Stocks are not systematically overvalued when either one of these two conditions is not met."

dates of MBA 610 finals

There has apparently been some misunderstanding of when tests are for the two on campus classes.

The final for the Monday class is Monday May 9th. The final for the Thursday class is TUESDAY May 10th.

Both tests are at normal class time.


The Hilbert final is the last Saturday starting at noon.

Finance 422 Assignment

Create a spreadsheet (excel or excel compatible) that uses the black Scholes formula to price call options.

From this also come up with the theoretical price for puts.

Once this is done, graph the various "greeks" (that is how the call price changes with the various variables.)


Due April 26, 2005