BU111 Lecture 13: BU111 Notes 13

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BU111 Full Course Notes
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Check to see if properly used informal report properly. Recommendation, don"t just say recommendation problem, recommendation, and what results can be expected. Analysis persuade sofy why this option is better than the others. Last sale rule - you can"t sell at a price lower than the last long price. When short selling, 150% cmv (current market value) must be in your margin account. Yield rhyme: what you made over what you paid. Annuity due a series of equal payments that start today worth more because we receive the money today r n. Pv perpetuity= pmt r use yield rate as r if no interest rate given n n is always equal to number of years multiplied by number of payments per year r r must match payment frequency. Multiply n by the number if payments per year. Divide r by the number of payments per year.

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