Final Exam Review Sheet
Day/Time: Thursday May 13, 2004; 10:15-12:15 am
Format: Similar to Midterm
Topics: Module 3 and 4.
Note the list below is not exhaustive of the topics that are potentially on the exam.
Definitions of EMH ; Weak, semi-strong, strong
Empirical tests of EMH
Implication of violations of EMH
Relation of EMH to Technical/Fundamental Analysis
Basis of technical analysis
Methods of technical analysis.
Trend evaluation (price, volume), resistance/ support
“Charts”; point and figure, moving average,
Indicators; relative strength, trin, etc.
Method of fundamental analysis
Business cycle evaluation
Evaluation of general macro-economy; monetary/fiscal policy.
What are options, call/put?
What does it mean to write an option? Why margin?
Describe payoffs/profits of options, combinations of options.
Understand the factors that influence the price of options.
Calculate using binomial tree option price.
Calculate using B-S option price.
Understand purpose of options as hedging and speculating instruments.