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6.4 Exercises

* 6.01 Price of an American call option.
* 6.02 Time value of European and American options.
* 6.03 Hedging your portfolio.
* 6.04 Forecast rates for American options.
* 6.05 American options using FEM with financial variables.
* 6.06 American call using FEM with log-normal variables.
* 6.07 American bond option.

All these problems can be edited and submitted for correction by selecting WORK:assignments on the course main page. They generally open with a template that provides useful advice and guidance to derive the solution. The color coding corresponds to the expected level of difficulty:

* Easy.
The problem is a direct application of the theory in a situation of practical interest: solutions typically combine text without formulas, ASCII plots and parameters of the VMARKET applet without any programming.
* Moderate.