... The
Official
Guide
for
GMAJ41'
Quantitative
Review
2nd
Edition
8
1.3
What
Is
the
Content
of
the
Test
Like?
It
is
important to recognize
that
the
GMAT
test ... (or the number
of
degrees in a complete revolution)
is
360.
The OfficialGuide
for
GMATIIl
Quantitative Review2nd
Edition
30
P(A
or
B)=
P(A)
+
P(B)
(since A
orB
are mutually ... first number and they-coordinate
is
the
second number.
45
The
Official
Guide
for
GMAT& quot;
Quantitative
Review 2nd
Edition
6
Schools consider many difterent aspects
of
an application...
... trading at a price of 100. It may be 100 dollars, euros, or
pounds sterling. Suppose you are given, free of charge, the right to buy XYZ
at the current price of 100 for the next two months. If XYZ ...
each other by simple logic: if one is true, then the others must be true.
It may be helpful to review the graphs and tables presented. As you work
through the examples in the next few chapters,...
... worthless, and if it does,
then you have still risked no more capital than you can afford.
The above guide to leverage is essential for those who sell calls naked. If
you are the seller of the above ... short
calls and puts. Their risks are lessened through
spreading. The following paragraphs offer guidelines on how to deal with
some of the more common, but by no means all, market situations....
... synthetic long call. For the purpose of illustration, let’s assume
that the call was purchased for free. At expiration, the synthetic position
would be as shown in Figure 21.4.
Now let’s return ... 100, a loss
is taken on the short underlying position. Let’s assume that the put was
sold for free. The graph at expiration would be as shown in Figure 21.5.
Returning to our SPZ example, suppose ... of the underlying. The sum equals
a synthetic long put. We’ll assume that the put is traded for free. At expira-
tion, the profit/loss graph is shown in Figure 21.6.
Returning to our SPZ example,...
... comments or questions, I would like to know. Feel free to
contact me at lenny@lennyjordan.com. I’ll try to include your feedback in
the next edition of this book.
A final word on trading
And ... theory
and in terms of trading. The Financial Times Guide to Options, and its pre-
cursor, Options Plain and Simple, are intended to be a practical guide to the
most common strategies tradable under ... costs are
low. Their unit profit might be small, but once the position is on, it is
almost risk free.
With contracts that have early exercise, in-the-money boxes often trade
for more than the...
... Hall.
Another classic. For those with an advanced mathematical background
Paul Wilmott Introduces Quantitative Finance (2007) by Paul Wilmott, John
Wiley & Sons.
Heavy on the maths, but readable. ... results 190–1
Further reading 309
Books about trading
The Gambler by F.M. Dostoyevsky (various editions).
To know the difference between trading and gambling.
Reminiscences of a Stock Operator ... bring you into the mind of the trader.
And finally…
The Meditations of Marcus Aurelius (various editions).
Advice from a battle-hardened emperor. Stoicism will help you manage
your self.
...
... 10:25:33 AM2/23/09 10:25:33 AM
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