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Option Pricing for Beginners
Option Pricing for Beginners
For a complete list of Beginners articles, see Financial Crisis for Beginners . I’ve had two posts so far on the terms under which Treasury sold back to Old National the warrants on Old National stock that Treasury got in exchange for its TARP investment, so I thought it was time for ...
Banks Want Government Subsidies to Buy Assets from Themselves
baselinescenario.com — From the headlines of the Wall Street Journal: “ Banks Aiming to Play Both Sides of Coin... — Industry Lobbies FDIC to Let Some Buy Toxic Assets With Taypayer Aid From Own Loan Books (subscription required, but Calculated Risk has an excerpt). I thought the headline had to be a ... (more) Banks Want Government Subsidies to Buy Assets from ...
First Buy High; Then Sell Low
baselinescenario.com — On Monday last week, Old National Bancorp bought back the warrants it had granted Treasury as part... of its participation in TARP, after buying back its preferred stock on March 31. Today, the New York Times ran a story saying that Treasury only paid $1.2 million to buy back the warrants, ... (more) First Buy High; Then Sell Low
The Finance-Government Complex & The End of U.S. Economic Dominance
wilmott.com — Banks remain in the ICU (intensive care unit). Even after around $900 billion in new capital, the... global banking system remains short of capital by around $1-2 trillion. This translates into an effective reduction in available credit of around 20-30% ... (more) The Finance-Government Complex & The End of U.S. ...
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Sunday links: warrant pricing
Abnormal Returns — ... Option (and warrant) pricing for beginners.   (Baseline Scenario also ...

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