SUGGESTED REFINEMENTS TO COURSES ON DERIVATIVES: PRESENTATION OF VALUATION EQUATIONS, PAY OFF DIAGRAMS AND MANAGERIAL APPLICATION FOR SECOND GENERATION OPTIONS
Why this work is in the frame
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Bibliographic record
Abstract
This pedagogical paper should help enrich the derivatives course that are delivered to both graduate and undergraduate students. We provide pricing formulae and payoff diagrams for some of the more popular second generation or exotic options. In spile of their growing popularity. cu rrent textbooks usually provide only cursory definitions. often without supporting mathematical equations, payoff diagrams and, most imponantiy. examples of their managerial application. This paper presents valuation equations. payoff diagrams and managerial applications for binary. lookback. choo~er, compound, Bermuda. ASian, barrier and forward stan options.
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Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.002 | 0.001 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.000 | 0.000 |
| Science and technology studies | 0.000 | 0.000 |
| Scholarly communication | 0.000 | 0.001 |
| Open science | 0.000 | 0.000 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it