Text corrections

You may wish to make the following corrections in your textbook. Note, that some books were printed at different times and all mistakes listed here may not be applicable to your book.

Page | Erroneous item | Corrected item |
---|---|---|

61 | 16(March) & 66 days | 17(March) & 67 days |

61 | $5x(66/184)=$1793.48 | $5X(67/184)=$1820.65 |

61 | $101,980.98 | $102,008.15 |

69 | Role of class A & B stock in US confused | B has more voting rights & A has dividend protection |

71 | warrants called long-term call options | warrants issued by firm selling stock & calls created by outside individuals |

106 | First 2 numerators have misplaced decimals | The equation should read as follows |

\begin{align} \frac{.087^2+(-.056)^2+(.0466)^2+(-.0012)^2+(-.0766)^2}{5}=\frac{.01883154}{5}=.003766308 \end{align}

Page | Erroneous item | Corrected item |
---|---|---|

232 | Note currency forward rate quotes used | These are given here as indirect quotes ie. foreign currency / domestic currency |

295 | Problem 8.16 strike price | Should note that $28 is the present value of the strike price |

428 | Mine value answer has $.65 in second numerator term | The equation should read as follows |

\begin{align} Mine value=\frac{\$.65(25,000)-\$.10(25,000)}{1+.05}+\frac{\$.60(50,000)-\$.10(50,000)}{(1+.06)^2}=\$35,345 \end{align}

Page | Erroneous item | Corrected item |
---|---|---|

766 | Indirect quotes used TL CPI of 5 used | 2930TL x 85.76/5.6 = 44.871 |

797 | Example 22.8 answer uses "national" incorrectly | the proper term is "notional" |

806 | Example 22.16 subscript is wrong: C_{1} = 5 - 5F_{inflation} - 3F_{inflation} |
C_{1} = 5 - 5F_{interest rates} - 3F_{inflation} |

811 | Sign is wrong: = 1.5x + .75(1 - x) | = -1.5x + .75(1-x) |

000 | 0000000000000000000000 | 000000000000000000000000000000000000000000000000000 |

page revision: 14, last edited: 07 Jul 2009 18:42