Friday, December 30, 2011

>> Options..

salam to all readers..

we have many options in our daily life..
and actually we can really relate it with the options term in financial mathematics..
sounds interesting, isn't it??

one simple example..
when you just finished your SPM papers..
what you want to do in the future?
either you want to continue study or work immediately..

for sure..
the choice is yours..

in financial ways..
if you choose to study..
you actually expect your salary is higher in the future..
calculate the present value of your future salary and compare with your salary if you working now..
if you really choose to study..
then you BUY CALL option..

meanwhile if you work immediately..

for sure it is the opposite situation with continue your study..
so you are SELL CALL option..
but the sell call option's profit is only when you expect your future salary is lower than now..
and the maximum you can get is what you earned now..

am i right, undergraduates out there??
you just continue to study because you will expect your salary is higher in the future..
isn't it??
because i really think this way..

"it is good to broaden your horizon."
who's word is this??
teka la..


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