EMPLOYEE STOCK OPTIONS : SIMPLE AMERICAN CALL OPTION

File Name: Employee Stock Options – Simple American Call Option

Location: Modeling Toolkit | Real Options Models

Brief Description: Computes the American call option (the option is exercisable at any time up to and including maturity) using binomial lattices and closed-form solutions

Requirements: Modeling Toolkit, Real Options SLS

Figure 170.1 shows how an American Call Option can be computed using the Real Options SLS software. American options are, of course, exercisable at any time prior to and up to and including the maturity period.

Figure 170.1: American call option

DETAILED LIST OF ALL TOPICS

DESCRIPTIVE STATISTICS
- MEASURING THE CENTER OF THE DISTRIBUTION–THE FIRST MOMENT
- MEASURING THE SPREAD OF THE DISTRIBUTION–THE SECOND MOMENT
- MEASURING THE SKEW OF THE DISTRIBUTION–THE THIRD MOMENT
- MEASURING THE CATASTROPHIC TAIL EVENTS IN A DISTRIBUTION–THE FOURTH MOMENT
- THE BASICS OF INTERPRETING PDF, CDF (S-CURVE), ICDF CHARTS
BAYES’ THEOREM
- HAWAIIAN CARD TRICK
- MONTY HALL GAME SHOW
- COVID-19 TESTING EFFICACY AND FALSE POSITIVES
DISCRETE DISTRIBUTIONS
- BINOMIAL DISTRIBUTION
- HYPERGEOMETRIC DISTRIBUTION
- POISSON DISTRIBUTION
- RELATIONSHIPS AMONG PROBABILITY DISTRIBUTIONS
GETTING STARTED WITH ROV BIZSTATS
QUANTITATIVE STATISTICAL METHODS AND DATA SCIENCE
- TWO-SAMPLE EQUAL VARIANCE T-TEST
- TWO-SAMPLE UNEQUAL VARIANCE T-TEST
- TWO-SAMPLE T-TEST WITH DEPENDENT MEANS
- F-TEST OF VARIANCES FROM INDEPENDENT SAMPLES
- Z-TEST OF PROPORTIONS
- Z-TEST OF PROPORTIONS AND MEANS
- SINGLE ANOVA WITH MULTIPLE TREATMENTS
- ANOVA WITH RANDOMIZED BLOCK TEST
- TWO-WAY ANOVA
- ANCOVA, MANOVA, AND TWO-WAY MANOVA
- CHI-SQUARE TESTS
- LINEAR AND NONLINEAR CORRELATIONS
  - Relationships Among Variables: Auto Correlation, Time Correlation, and Factor-Related Methods
- NORMALITY TESTS AND DISTRIBUTIONAL FITTING
  - Kolmogorov–Smirnov Test
  - Chi-Square Test
  - Akaike Information Criterion, Anderson–Darling, Kuiper’s Statistic, and Schwarz/Bayes Criterion
  - Box–Cox Transformation
- NONPARAMETRIC TESTS
  - Runs Test for Randomness
  - Wilcoxon Signed-Rank Test and Mann–Whitney Test
  - Lilliefors, Q-Q Chart, D’Agostino–Pearson, and Shapiro–Wilk–Royston Tests
  - Kruskal–Wallis, Mood’s Multivariate Medians, and Cochran’s Q Tests
  - Friedman’s Test
- INTER-RATER RELIABILITY, INTRA-RATER RELIABILITY, CONSISTENCY, CREDIBILITY, DIVERSITY, INTERNAL VALIDITY, EXTERNAL VALIDITY, AND PREDICTABILITY
  - Inter-Rater Reliability with Pairwise Cohen’s Kappa
  - Internal Consistency and Reliability with Cronbach’s Alpha for Binary Data
  - Internal Consistency and Reliability with Guttman’s Lambda
  - Inter-Rater Reliability Using Inter-Class Correlation (ICC) Measures
  - Kendall’s W Measure of Concordance Inter-Rater Reliability Test (With or Without Ties)
  - Data Diversity with Shannon, Brillouin, and Simpson Diversity and Homogeneity Test
  - Grubbs Test for Outliers and Mahalanobis Distance
  - Linear and Quadratic Discriminant Analysis
  - Internal Validity
  - External Validity
  - Predictability and Accuracy: Akaike, Bayes, Hannan–Quinn, Diebold–Mariano, Pesaran–Timmermann
  - Precision and Error Control
- LINEAR AND NONLINEAR MULTIVARIATE REGRESSION
- TESTS FOR MULTICOLLINEARITY AND HETEROSKEDASTICITY
- BEYOND MULTIPLE REGRESSION: STRUCTURAL EQUATION MODELING (SEM) WITH PARTIAL LEAST SQUARES (PLS) ON PATH ESTIMATION
- BEYOND MULTIPLE REGRESSION: ENDOGENEITY AND SIMULTANEOUS EQUATIONS METHODS AND TWO-STAGE LEAST SQUARES
- BEYOND MULTIPLE REGRESSION: GRANGER CAUSALITY AND ENGLE–GRANGER METHODS
- BEYOND MULTIPLE REGRESSION: POISSON REGRESSION, DEMING REGRESSION, ORDINAL LOGISTIC REGRESSION, RIDGE REGRESSION, AND WEIGHTED REGRESSION
  - Multiple Poisson Regression (Population and Frequency)
  - Multiple Regression (Deming Regression with Known Variance)
  - Multiple Regression (Ordinal Logistic Regression)
  - Multiple Ridge Regression (Low Variance, High Bias, High VIF)
  - Multiple Weighted Regression (Fixing Heteroskedasticity)
ARTIFICIAL INTELLIGENCE MACHINE LEARNING METHODS
- AI MACHINE LEARNING: BAGGING LINEAR FIT BOOTSTRAP (SUPERVISED)
- AI MACHINE LEARNING: BAGGING NONLINEAR FIT BOOTSTRAP (SUPERVISED)
- AI MACHINE LEARNING: CLASSIFICATION AND REGRESSION TREES CART (SUPERVISED)
- AI MACHINE LEARNING: CLASSIFICATION WITH GAUSSIAN MIX & K-MEANS SEGMENTATION (UNSUPERVISED)
- AI MACHINE LEARNING: CLASSIFICATION WITH K-NEAREST NEIGHBORS (SUPERVISED)
- AI MACHINE LEARNING: CLASSIFICATION WITH PHYLOGENETIC TREES & HIERARCHICAL CLUSTERING (UNSUPERVISED)
- AI MACHINE LEARNING: CLASSIFICATION WITH SUPPORT VECTOR MACHINES (SUPERVISED)
- AI MACHINE LEARNING: CUSTOM FIT MODEL (SUPERVISED)
- AI MACHINE LEARNING: DIMENSION REDUCTION PCA (UNSUPERVISED)
- AI MACHINE LEARNING: DIMENSION REDUCTION FACTOR ANALYSIS (UNSUPERVISED)
- AI MACHINE LEARNING: ENSEMBLE COMMON FIT (NONLINEAR) (SUPERVISED)
- AI MACHINE LEARNING: ENSEMBLE COMPLEX FIT (NONLINEAR) (SUPERVISED)
- AI MACHINE LEARNING: ENSEMBLE TIME-SERIES (SUPERVISED)
- AI MACHINE LEARNING: LINEAR FIT MODEL (SUPERVISED)
- AI MACHINE LEARNING: MULTIVARIATE DISCRIMINANT ANALYSIS (LINEAR) (SUPERVISED)
- AI MACHINE LEARNING: MULTIVARIATE DISCRIMINANT ANALYSIS (QUADRATIC) (SUPERVISED)
- AI MACHINE LEARNING: NEURAL NETWORK (SUPERVISED)
- AI MACHINE LEARNING: LOGISTIC BINARY CLASSIFICATION (SUPERVISED)
- AI MACHINE LEARNING: NORMIT PROBIT BINARY CLASSIFICATION (SUPERVISED)
- AI MACHINE LEARNING: RANDOM FOREST (SUPERVISED)
- AI MACHINE LEARNING: SEGMENTATION CLUSTERING (UNSUPERVISED)
ROV BIZSTATS QUICK REFERENCE GUIDE: ANALYTICS SUMMARY
- NONPARAMETRIC HYPOTHESIS TESTS
- PARAMETRIC HYPOTHESIS TESTS
- CONTINUED LIST OF ANALYTICAL METHODS
FORECASTING AND PREDICTIVE MODELING
- DIFFERENT TYPES OF FORECASTING TECHNIQUES
- RUNNING THE FORECASTING TOOL IN RISK SIMULATOR
- TIME-SERIES ANALYSIS
- MULTIVARIATE REGRESSION
- STEPWISE REGRESSION
- STOCHASTIC FORECASTING
- NONLINEAR EXTRAPOLATION
- BOX–JENKINS ARIMA ADVANCED TIME-SERIES FORECASTS
- AUTO ARIMA (BOX–JENKINS ARIMA TIME-SERIES) FORECASTS
- BASIC ECONOMETRICS
- J-CURVE AND S-CURVE FORECASTS
- GARCH VOLATILITY FORECASTS
- MARKOV CHAINS
- GENERALIZED LINEAR MODELS & MAXIMUM LIKELIHOOD MODELS ON LOGIT, PROBIT, AND TOBIT
- SPLINE (CUBIC SPLINE INTERPOLATION AND EXTRAPOLATION)
- NEURAL NETWORK AND COMBINATORIAL FUZZY LOGIC FORECASTING METHODOLOGIES
- TRENDLINE FORECASTS
- TIME-SERIES FORECASTING METHODOLOGY
- NO TREND AND NO SEASONALITY
- WITH TREND BUT NO SEASONALITY
- NO TREND BUT WITH SEASONALITY
- WITH SEASONALITY AND WITH TREND
- REGRESSION ANALYSIS
- THE PITFALLS OF FORECASTING: OUTLIERS, NONLINEARITY, MULTICOLLINEARITY, HETEROSKEDASTICITY, AUTOCORRELATION, AND STRUCTURAL BREAKS
- OTHER TECHNICAL ISSUES IN REGRESSION ANALYSIS
- FUNCTIONAL FORMS OF BIVARIATE REGRESSION
- ADVANCED REGRESSION METHODS, REGRESSION-RELATED METHODS, AND THEIR VARIATIONS
- REGRESSION AND FORECASTING DIAGNOSTIC TOOL
- STATISTICAL ANALYSIS TOOL
MONTE CARLO SIMULATION BASICS
- WHAT IS MONTE CARLO SIMULATION?
- WHY ARE SIMULATIONS IMPORTANT?
- COMPARING SIMULATION WITH TRADITIONAL ANALYSES
- USING RISK SIMULATOR AND EXCEL TO PERFORM SIMULATIONS
RISK SIMULATOR: RUNNING MONTE CARLO SIMULATION
- GETTING STARTED WITH RISK SIMULATOR
- RUNNING A MONTE CARLO SIMULATION
- USING FORECAST CHARTS AND CONFIDENCE INTERVALS
- CORRELATIONS AND PRECISION CONTROL
- PRECISION AND ERROR CONTROL
- TROUBLESHOOTING AND RISK SIMULATOR TIPS
- HELPFUL TIPS AND TECHNIQUES IN RISK SIMULATOR
RISK SIMULATOR: ADVANCED DATA ANALYTICS
- TORNADO AND SENSITIVITY TOOLS IN SIMULATION
- SENSITIVITY ANALYSIS
- DISTRIBUTIONAL FITTING: SINGLE VARIABLE AND MULTIPLE VARIABLES
- FITTING MULTIPLE VARIABLES
- DISTRIBUTIONAL FITTING ALGORITHMS
- PERCENTILE DISTRIBUTIONAL FITTING TOOL
- BOOTSTRAP SIMULATION
- HYPOTHESIS TESTING
- DATA EXTRACTION, SAVING SIMULATION RESULTS, AND GENERATING REPORTS
- DISTRIBUTIONAL ANALYSIS TOOL
- SCENARIO ANALYSIS TOOL
- SEGMENTATION CLUSTERING TOOL
- STRUCTURAL BREAK ANALYSIS
- DETRENDING AND DESEASONALIZING
- PRINCIPAL COMPONENT ANALYSIS
RISK SIMULATOR: OPTIMIZATION (THE SEARCH FOR THE OPTIMAL DECISION)
- WHAT IS AN OPTIMIZATION MODEL?
- THE TRAVELING FINANCIAL PLANNER
- THE LINGO OF OPTIMIZATION
- OPTIMIZATION ALGORITHMS
- CONTINUOUS OPTIMIZATION
- DISCRETE INTEGER OPTIMIZATION
- EFFICIENT FRONTIER AND ADVANCED OPTIMIZATION SETTINGS
- STOCHASTIC OPTIMIZATION
- OPTIMIZATION APPLICATION EXAMPLE: MILITARY PORTFOLIO AND EFFICIENT FRONTIER
- OPTIMIZATION APPLICATION EXAMPLE: OPTIMAL PRICING WITH ELASTICITY
- COMPUTING ANNUALIZED RETURNS AND RISK FOR PORTFOLIO OPTIMIZATION
- EXERCISE: OPTIMIZATION
PROJECT ECONOMICS EVALUATION AND PORTFOLIO SELECTION WITH PEAT
- NET PRESENT VALUE
- INTERNAL RATE OF RETURN
- MODIFIED INTERNAL RATE OF RETURN
- PROFITABILITY INDEX
- PAYBACK PERIOD
- DISCOUNTED PAYBACK PERIOD
- EXAMPLE COMPUTATIONS
- PEAT SOFTWARE
  - Navigating Inside the PEAT Software
- PROJECT ECONOMICS USING PEAT
- APPLIED ANALYTICS IN PEAT
  - Applied Analytics | Static Tornado
  - Applied Analytics | Scenario Analysis
- RISK SIMULATION IN PEAT
- STRATEGIC REAL OPTIONS
- FORECAST PREDICTION IN PEAT
- PORTFOLIO OPTIMIZATION & PROJECT SELECTION IN PEAT
- PEAT DASHBOARD, KNOWLEDGE MANAGEMENT, AND OPTIONS
- FORMULAE SUMMARY
DYNAMIC RISK-BASED PROJECT MANAGEMENT WITH PEAT
- PROJECT MANAGEMENT WITH PEAT
  - Traditional Schedule Management
  - Probabilistic Schedule Management
- HANDS-ON PROJECT MANAGEMENT IN PEAT
- SCHEDULE & COST RISK COMPUTATIONS
- SCHEDULE SIMULATION
  - Creating and Simulating
  - Monte Carlo Simulation on Schedule Risk
- CPM & GANTT ANALYSIS
  - Manually Solving a Critical Path Model
  - Comparing with PEAT Calculations & GANTT Charts
- OVERRUN BUFFERS & LINKED TASKS WITH PROBABILITY OF SUCCESS
  - Basic Model, Cost Overruns, Probability of Success for Each Task
- PRICING MODELS USING COST, RISK, & OPPORTUNITY
  - Work Breakout Structure Cost Models
  - PEAT Cost Pricing Module
- BUILDING A NEW HOUSE
  - Steps in Building a New Home
  - Complex Schedule and Cost Model
ENTERPRISE RISK MANAGEMENT WITH PEAT
- ENTERPRISE RISK MANAGEMENT
- TRADITIONAL APPROACHES
- RISK REGISTERS AND BASIC ENTERPRISE RISK MANAGEMENT
- CASE EXAMPLE: HOSPITAL RISK MANAGEMENT
- RISK MATRIXES
- BUSINESS CONTINUITY PLANNING
- COMPREHENSIVE ERM WITH QUANTITATIVE RISK MANAGEMENT
- HANDS-ON PROJECT MANAGEMENT IN PEAT
- COMPLIANCE WITH GLOBAL STANDARDS: BASEL, COSO, ISO, NIST, AND SARBOX
- COMPLIANCE WITH INTERNATIONAL STANDARDS ORGANIZATION ISO 31000:2009
- COMPLIANCE WITH BASEL III AND BASEL IV FRAMEWORK
- COMPLIANCE WITH COSO INTEGRATED RISK FRAMEWORK
- DYNAMIC EVALUATION OF ENTERPRISE RISK MANAGEMENT AT ELETROBRAS FURNAS IN BRAZIL
- BANKING OPERATIONAL AND ENTERPRISE RISK
  - OPERATIONAL RISK AT BANKS
CREDIT, MARKET, OPERATIONAL, AND LIQUIDITY RISK WITH CMOL SOFTWARE
- CMOL Software on Modeling Banking Risk
- Credit Economic and Regulatory Capital
- Basel Credit Risk Models and Economic Capital
- Retail Loans: Residential Mortgage Exposures
- Retail Loans: Qualifying Revolving Retail Exposures
- Retail Loans: Other Retail Exposures
- Corporate Loans: Corporate, Sovereign, Bank, and Corporate Loans
- Market Risk
- Central Bank Market Risk
- Asset Liability Management
- ALM: Net Interest Margin and Economic Value of Equity
- Scenario Analysis and Stress Testing
- Credit and Market Risk Analytical Models
- Operational Risk
- ANALYTICAL MODELS
  - Probability of Default
  - Structural Models of Probability of Default
  - Illustrative Example: Structural Probability of Default Models on Public Firms
  - Illustrative Example: Structural Probability of Default Models on Private Firms
  - Empirical Models of Probability of Default
  - Illustrative Example: Applying Empirical Models of Probability of Default
  - Loss Given Default and Expected Losses
  - Economic Capital and Value at Risk
  - Illustrative Example: Structural VaR Models
  - Illustrative Example: VaR Models using Monte Carlo Risk Simulation
  - Efficient Portfolio Allocation and Economic Capital VaR
  - Illustrative Example: Portfolio Optimization and the Effects on Portfolio VaR
  - Illustrative Example: Risk Analysis – Interest Rate Risk
  - Illustrative Example: Risk Hedging – Delta-Gamma Hedging
  - Illustrative Example: Risk Hedging – Delta Hedging
  - Illustrative Example: Risk Hedging – Effects of Fixed versus Floating Rates (Swaps)
  - Illustrative Example: Risk Hedging – Foreign Exchange Cash Flow Model
  - Illustrative Example: Risk Hedging – Hedging Foreign Exchange Exposure
  - Illustrative Example: Volatility – Implied Volatility
  - Illustrative Example: Volatility – Volatility Computations
  - Illustrative Example: Yield Curve – CIR Model
  - Illustrative Example: Yield Curve – Curve Interpolation BIM Model
  - Illustrative Example: Yield Curve – Curve Spline Interpolation and Extrapolation Model
  - Illustrative Example: Yield Curve – Forward Rates from Spot Rates
  - Illustrative Example: Yield Curve – Vasicek Model
  - Illustrative Example: Stochastic Forecasting of Interest Rates and Stock Prices
  - Stochastic Process Forecasting
- PROBABILITY OF DEFAULT AND VALUE AT RISK
  - Probability of Default – Bond Yields and Spreads (Market Comparable Approach)
  - Probability of Default – Empirical Model
  - Probability of Default – External Options Model (Public Company)
  - Probability of Default – Merton Internal Options Model (Private Company)
  - Probability of Default – Merton Market Options Model (Industry Comparable)
  - Value at Risk – Optimized and Simulated Portfolio VaR
  - Value at Risk – Options Delta Portfolio VaR
  - Value at Risk – Portfolio Operational and Credit Risk VaR Capital Adequacy
  - Value at Risk – Right-Tail Capital Requirements
  - Value at Risk – Static Covariance Method
  - Volatility – Implied Volatility
  - Volatility – Volatility Computations
- COMPLIANCE WITH GLOBAL STANDARDS: BASEL, COSO, ISO, NIST, AND SARBOX
- COMPLIANCE WITH INTERNATIONAL STANDARDS ORGANIZATION ISO 31000:2009
- COMPLIANCE WITH BASEL III/IV/IV AND BASEL IV FRAMEWORK
- COMPLIANCE WITH COSO INTEGRATED RISK FRAMEWORK
REAL OPTIONS SLS APPLICATIONS
- EMPLOYEE STOCK OPTIONS : SIMPLE AMERICAN CALL OPTION
- EMPLOYEE STOCK OPTIONS : SIMPLE BERMUDAN CALL OPTION WITH VESTING
- EMPLOYEE STOCK OPTIONS : SIMPLE EUROPEAN CALL OPTION
- EMPLOYEE STOCK OPTIONS : SUBOPTIMAL EXERCISE
- EMPLOYEE STOCK OPTIONS : VESTING, BLACKOUT, SUBOPTIMAL, FORFEITURE
- EXOTIC OPTIONS : AMERICAN AND EUROPEAN LOWER BARRIER OPTIONS
- Exotic Options – American and European Upper Barrier Option
- Exotic Options – American and European Double Barrier Options and Exotic Barriers
- Exotic Options – Basic American, European, and Bermudan Call Options
- Exotic Options – Basic American, European, and Bermudan Put Options
- Real Options – American, European, Bermudan, and Customized Abandonment Option
- Real Options – American, European, Bermudan, and Customized Contraction Option
- Real Options – American, European, Bermudan, and Customized Expansion Option
- Real Options – Contraction, Expansion, and Abandonment Option
- Real Options – Dual-Asset Rainbow Option Using Pentanomial Lattices
- Real Options – Exotic Chooser Options
- Real Options – Exotic Complex Floating American and European Chooser
- Real Options – Jump-Diffusion Option Using Quadranomial Lattices
- Real Options – Mean-Reverting Calls and Puts Using Trinomial Lattices
- Real Options – Multiple Assets Competing Options
- Real Options – Path-Dependent, Path-Independent, Mutually Exclusive, Nonmutually Exclusive, and Complex Combinatorial Nested Options
- Real Options – Sequential Compound Options
- Real Options – Simultaneous Compound Options
- Real Options – Simple Calls and Puts Using Trinomial Lattices
REAL OPTIONS STRATEGIC CASE STUDIES – FRAMING THE OPTIONS
- Real Options Strategic Cases – High-Tech Manufacturing: Build or Buy Decision with Real Options
- Real Options Strategic Cases – Oil and Gas: Farmouts, Options to Defer, and Value of Information
- Real Options Strategic Cases – Pharmaceutical Development: Value of Perfect Information and Optimal Trigger Values
- Real Options Strategic Cases – Option to Switch Inputs
- Valuation – Convertible Warrants with a Vesting Period and Put Protection
TECHNICAL NOTES
- TECHNICAL NOTE 1: THE BASICS OF INTERPRETING PDF, CDF, AND ICDF
- TECHNICAL NOTE 2: CONVOLUTION AND COPULAS—THEORY VERSUS PRACTICE
- TECHNICAL NOTE 3: CONVOLUTION OF MULTIPLICATION OF FREQUENCY AND SEVERITY DISTRIBUTIONS IN OPERATIONAL RISK CAPITAL MODEL IN BASEL III/IV
- TECHNICAL NOTE 4: PARETO CHARTS AND SENSITIVITY CHARTS
- TECHNICAL NOTE 5: DISTRIBUTION CHARTS AND TABLES USING THE PROBABILITY DISTRIBUTION TOOL
- TECHNICAL NOTE 6: PERCENTILE DISTRIBUTIONAL FITTING TOOL
- TECHNICAL NOTE 7: DYNAMIC PROJECT MANAGEMENT WITH COST AND SCHEDULE RISK
VISUAL GUIDES, SUMMARIES, TABLES, MODELS LIST, AND USEFUL ADDENDA
- DISTRIBUTIONAL MOMENTS
- CORRELATIONS
- PROBABILITY DISTRIBUTIONS
- ANALYTICAL TOOLS
- DISTRIBUTIONAL FITTING
- RELATIONSHIP AMONG PROBABILITY DISTRIBUTIONS
- RELATIONSHIP AMONG STATIC, DYNAMIC, AND STOCHASTIC METHODS
- FORECASTING METHODS
- DATA DIAGNOSTICS
- OPTIMIZATION METHODS
- STRATEGIC REAL OPTIONS
- QUICK FACTS
- OPTIONS THEORY
MODELING TOOLKIT APPLICATIONS
- Analytics – Central Limit Theorem
- Analytics – Central Limit Theorem – Winning Lottery Numbers
- Analytics – Flaw of Averages
- Analytics – Mathematical Integration Approximation Model
- Analytics – Projectile Motion
- Analytics – Regression Diagnostics
- Analytics – Ships in the Night
- Analytics – Statistical Analysis
- Analytics – Weighting of Ratios
- Credit Analysis – Credit Premium
- Credit Analysis – Credit Default Swaps and Credit Spread Options
- Credit Analysis – Credit Risk Analysis and Effects on Prices
- Credit Analysis – External Debt Ratings and Spread
- Credit Analysis – Internal Credit Risk Rating Model
- Credit Analysis – Profit-Cost Analysis of New Credit
- Debt Analysis – Asset-Equity Parity Model
- Debt Analysis – Cox Model on Price and Yield of Risky Debt with Mean-Reverting Rates
- Debt Analysis – Debt Repayment and Amortization
- Debt Analysis – Debt Sensitivity Models
- Debt Analysis – Merton Price of Risky Debt with Stochastic Asset and Interest
- Debt Analysis – Vasicek Debt Option Valuation
- Debt Analysis – Vasicek Price and Yield of Risky Debt
- Decision Analysis – Decision Tree Basics
- Decision Analysis – Decision Tree with EVPI, Minimax, and Bayes’ Theorem
- Decision Analysis – Economic Order Quantity and Inventory Reorder Point
- Decision Analysis – Economic Order Quantity and Optimal Manufacturing
- Decision Analysis – Expected Utility Analysis
- Decision Analysis – Inventory Control
- Decision Analysis – Queuing Models
- Exotic Options – Accruals on Basket of Assets
- Exotic Options – American, Bermudan, and European Options with Sensitivities
- Exotic Options – American Call Option on Foreign Exchange
- Exotic Options – American Call Option on Index Futures
- Exotic Options – European Call Option with Dividends
- Exotic Options – Asian Lookback Options Using Arithmetic Averages
- Exotic Options – Asian Lookback Options Using Geometric Averages
- Exotic Options – Asset or Nothing Options
- Exotic Options – Barrier Options
- Exotic Options – Binary Digital Options
- Exotic Options – Cash or Nothing Options
- Exotic Options – Chooser Option (Simple Chooser)
- Exotic Options – Chooser Option (Complex Chooser)
- Exotic Options – Commodity Options
- Exotic Options – Currency (Foreign Exchange) Options
- Exotic Options – Double Barrier Options
- Exotic Options – European Call Option with Dividends
- Exotic Options – Exchange Assets Option
- Exotic Options – Extreme Spreads Option
- Exotic Options – Foreign Equity-Linked Foreign Exchange Options in Domestic Currency
- Exotic Options – Foreign Equity Struck in Domestic Currency
- Exotic Options – Foreign Equity with Fixed Exchange Rate
- Exotic Options – Foreign Takeover Options
- Exotic Options – Forward Start Options
- Exotic Options – Futures and Forward Options
- Exotic Options – Gap Options
- Exotic Options – Graduated Barrier Options
- Exotic Options – Index Options
- Exotic Options – Inverse Gamma Out-of-the-Money Options
- Exotic Options – Jump-Diffusion Options
- Exotic Options – Leptokurtic and Skewed Options
- Exotic Options – Lookback with Fixed Strike (Partial Time)
- Exotic Options – Lookback with Fixed Strike
- Exotic Options – Lookback with Floating Strike (Partial Time)
- Exotic Options – Lookback with Floating Strike
- Exotic Options – Min and Max of Two Assets
- Exotic Options – Options on Options
- Exotic Options – Option Collar
- Exotic Options – Perpetual Options
- Exotic Options – Range Accruals (Fairway Options)
- Exotic Options – Simple Chooser
- Exotic Options – Spread on Futures
- Exotic Options – Supershare Options
- Exotic Options – Time Switch Options
- Exotic Options – Trading-Day Corrections
- Exotic Options – Two-Asset Barrier Options
- Exotic Options – Two-Asset Cash or Nothing
- Exotic Options – Two Correlated Assets Option
- Exotic Options – Uneven Dividend Payments Option
- Exotic Options – Writer Extendible Option
- Forecasting – Data Diagnostics
- Forecasting – Econometric, Correlations, and Multiple Regression Modeling
- Forecasting – Exponential J-Growth Curves
- Forecasting – Forecasting Manual Computations
- Forecasting – Linear Interpolation and Nonlinear Spline Extrapolation
- Forecasting – Logistic S-Growth Curves
- Forecasting – Markov Chains and Market Share
- Forecasting – Multiple Regression
- Forecasting – Nonlinear Extrapolation and Forecasting
- Forecasting – Stochastic Processes, Brownian Motion, Forecast Distribution at Horizon, Jump-Diffusion, and Mean-Reversion
- Forecasting – Time-Series ARIMA
- Forecasting – Time-Series Analysis
- Industry Application – Banking – Integrated Risk Management, Probability of Default, Economic Capital, Value at Risk, and Optimal Bank Portfolios
- Operational Risk – Queuing Models at Bank Branches
- Optimization – Continuous Portfolio Allocation
- Optimization – Discrete Project Selection
- Optimization – Inventory Optimization
- Optimization – Investment Portfolio Allocation
- Optimization – Investment Capital Allocation I (Basic Model)
- Optimization – Investment Capital Allocation II (Advanced Model)
- Optimization – Military Portfolio and Efficient Frontier
- Optimization – Optimal Pricing with Elasticity
- Optimization – Optimization of a Harvest Model
- Optimization – Optimizing Ordinary Least Squares
- Optimization – Stochastic Portfolio Allocation
- Options Analysis – Binary Digital Instruments
- Options Analysis – Options Trading Strategies
- Options Analysis – Options-Adjusted Spreads Lattice
- Options Analysis – Options on Debt
- Options Analysis – Five Plain Vanilla Options
- Personal Finance Models
- Probability of Default – Bond Yields and Spreads (Market Comparable Approach)
- Probability of Default – Empirical Model
- Probability of Default – External Options Model (Public Company)
- Probability of Default – Merton Internal Options Model (Private Company)
- Project Management – Cost Estimation Model
- Probability of Default – Merton Market Options Model (Industry Comparable)
- Project Management – Critical Path Analysis (CPM PERT GANTT)
- Project Management – Project Timing
- Real Estate – Commercial Real Estate ROI
- Risk Analysis – Integrated Risk Management
- Risk Analysis – Interest Rate Risk
- Risk Analysis – Portfolio Risk and Return Profiles
- Risk Hedging – Delta-Gamma Hedging
- Risk Hedging – Delta Hedging
- Risk Hedging – Effects of Fixed versus Floating Rates
- Risk Hedging – Foreign Exchange Cash Flow Model
- Risk Hedging – Hedging
- Sensitivity – Greeks
- Sensitivity – Tornado and Linear Sensitivity Charts
- Simulation – Basic Simulation Model
- Simulation – Best Surgical Team
- Simulation – Correlated Simulation
- Simulation – Correlation Effects on Risk
- Simulation – Custom Simulation Equations
- Simulation – Data Fitting
- Simulation – Debt Repayment and Amortization
- Simulation – Demand Curve and Elasticity Estimation
- Simulation – Discounted Cash Flow, Return on Investment, and Volatility Estimates
- Simulation – Infectious Diseases
- Simulation – Recruitment Budget (Negative Binomial and Multidimensional Simulation)
- Simulation – Retirement Funding with VBA Macros
- Simulation – Roulette Wheel
- Simulation – Time Value of Money
- Six Sigma – Obtaining Statistical Probabilities, Basic Hypothesis Tests, Confidence Intervals, and Bootstrapping Statistics
- Six Sigma – Sample Size Determination and Design of Experiments
- Six Sigma – Statistical and Unit Capability Measures, Specification Levels, and Control Charts
- Valuation – Buy versus Lease
- Valuation – Classified Loan Borrowing Base
- Valuation – Break-Even Inventory: Seasonal Lending Trial Balance Analysis
- Valuation – Firm in Financial Distress
- Valuation – Banking and Pricing Loan Fees Model
- Valuation – Simulation and Valuation
- Value at Risk – Optimized and Simulated Portfolio VaR
- Value at Risk – Options Delta Portfolio VaR
- Value at Risk – Portfolio Operational and Credit Risk VaR Capital Adequacy
- Value at Risk – Right-Tail Capital Requirements
- Value at Risk – Static Covariance Method
- Volatility – Implied Volatility
- Volatility – Volatility Computations
- Yield Curve – CIR Model
- Yield Curve – Curve Interpolation BIM Model
- Yield Curve – Curve Interpolation NS Model
- Yield Curve – Forward Rates from Spot Rates
- Yield Curve – Term Structure of Volatility
- Yield Curve – U.S. Treasury Risk-free Rates and Cubic Spline Curves
- Yield Curve – Vasicek Model