ECON 423 Study Guide - Midterm Guide: The Terminal, Algorithmic Trading, United States Treasury Security
Document Summary
Thursday, february 16, 2017, in class at 4:00 - 5:30, kingston hall, room 108. The contents of this examination are as follows: Additional information for question 2: answer all questions in the examination booklets provided, calculators are permitted, no books, notes or other electronic devices are permitted during the exam, short answers will save you time. If your answer is correct, you will get full marks. Lewie rainmaker is an investment manager at salmon brothers. He is an expert in the mortgage nance business. His business is built on selling investments to fund managers who trade only in interest-bearing securities. We will follow him through the years as he markets a series of nancial innovations: [25 marks] our story begins in the 1970"s. Lewie"s investors can only trade in com- pletely riskless, aaa-rated securities. As a result, the payo matrix is t = (100, 100, 100), the payo from a completely riskless treasury bond.
