Work detail

Microeconomic modelling of the behaviour on the financial markets – trading with the derivatives

Author: Mgr. Viera Koľová
Year: 2006 - summer
Leaders: prof. RNDr. Jiří Hlaváček CSc.
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: Slovak
Pages: 62
Awards and prizes:
Link:
Abstract: Financial markets represent a large comlex with a lot of factors. What is for the agents, who are trading on the financial markets important, is to set a method of predicting the future spot price of the assets and the risk, resulting from their positions. Financial derivatives are instruments, those trading depends on the future spot prices predictions and are used for speculative purposes or for hedging. Black-Scholes equation implies the option price, but concludes some not real assumptions.The way, how to determine the option price and to avoid the assumptions in Black-Scholes equation, is to start from the option writer’ variation of wealth.

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