B.2 #12 typo
August 6th, 2010
There was a typo in B.2 #12. The 6% should be 8%. I have fixed the file.
Archive
Archive for the ‘Errata’ Category
B.2.P #4
August 5th, 2010
There was a typo in this problem. Bill’s profit should be $20 instead of $10. I’ve updated the file.
A.6.P typo
July 20th, 2010
There was a typo in problem #8 of A.6.P Problem Set. 1C should have been “>” instead of “=”. I have updated the download.
B.3 Problem Set #6
July 4th, 2010
There was two typos in B.3.P #6. 3 should have said “lending” instead of “borrowing” and 4 should have said “borrowing” instead of “loaning”. I’ve uploaded an updated file.
B.3.1 update
November 13th, 2009
Sorry but last time I fixed the video, but still had a mistake in the notes. The notes have now been fixed. Please download an updated version of the notes for lesson B.3.1.
B.3.1 lesson updated
November 4th, 2009
There were two errors in lesson B.3.1 that have been fixed in the outline, handouts and videos.
On page 2
long position + purchased put = call option + borrow strike price
should be
long position + purchased put + borrow PV strike = purchased call
On page 3
short position + purchased call = purchased put + lend strike price
should
short position + purchased call + lend PV strike = purchased put
Sample Exam 1 – #3
August 7th, 2009
There was a typo in problem #3 of Sample Exam 1. The file has been updated.
B.3.1 Correction
April 16th, 2008
In lesson B.3.1 the following relationship:
long position + purchased put = call option + borrow pv strike price
Should be:
long position + purchased put = call option + lend pv strike price
Which makes complete sense b/c when you enter into a long position you pay money now (to buy the asset) and get money later (when you sell the asset), which is like lending money (pay money now and get money later). A similar understanding yields:
short position + purchased call = purchased put + borrow pv strike price
Since in a short position you get money now (from the short sale) and pay money later (when close the position), which the just like borrowing money (get money now and pay it back later).