Math 3650/5650 Pricing ProjectC/C++

Java Python Math 3650/5650 Pricing Project

Suggested Outline

I.  Executive Summary

Brief discussion of the assignment:

State the question being asked

State your recommendation

II. Base Pricing Assumptions and base-case risk-adjusted IRR.

Discussion of why assumptions are appropriate

Discussion of criteria to assess risk 

III. Discussion of Sensitivity Test Results

Be sure to include a summary table of key results for each sensitivity test in this section! 

Optional:  Include break-even tests here if you choose to do them

IV. Discuss Scenario Test(s) Resdai 写Math 3650/5650 Pricing ProjectC/C++ ults

Be sure to state why you chose this scenario test; why these assumptions are dependent on each other, and why a change in one assumption would cause the other assumption to change in the direction and magnitude you tested. Be sure to include a summary table of key results in this section!

V. Conclusion and Recommendation

This requires a clear, specific recommendation supported by and consistent with your sensitivity tests and scenario tests.  How did you reach your conclusion from these tests?  Which tests most led to your recommendation?  How did the premium rate charged by our competitor influence your recommendation?

VI. Optional- some people include tables of results in an appendix that show more results than provided in Sections III and IV above. It’s not necessary but often is useful