O'Reilly logo

Finance by Lucia Staszkiewicz, Piotr Staszkiewicz

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 3

Fundamentals of Financial Instruments Pricing

Abstract

Finding the intrinsic (fundamental) value, comparing it to the market value (or offer), and making a decision to buy (sell) or not to buy (sell).

Keywords

intrinsic value
market value
one price law
arbitrage
fixed income
equity
derivatives
image

3.1. Decision-making process

The financial decision-making process can be defined as:
Finding the intrinsic (fundamental) value and comparing it to the market value (or offer) and making a decision to buy (sell) or not to buy (sell).
Consequently first we need to obtain: the market value of the assets (or bid ask offers from another ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required