books
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Since forward pricing formulas are used to evaluate futures, the question arises: are futures and forwards priced the same? Theoretically, in the long run, it is said that a futures contract should be slightly more attractive than a forward contract with the same terms. The reasoning goes like this: If we assume that the underlying…
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The valuation of real options can be approached in the same way as financial options, though the main issue here is finding the correct discount rate. To remind you, real options involve decisions that are irreversible or nearly irreversible, such as: What’s interesting here: A decision tree of events and choices is used to understand…
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It’s a good book. I liked it, and I’ll summarize the findings. First of all, I’ll say that it’s an extraordinary book, where the opinions presented are based on research. What do sumo wrestlers and schoolteachers have in common? This chapter discusses how motivation affects people and shows that even professionals in respected fields, like…
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