# August 2014

### The Ukraine War – Modern Asymmetric Warfare morphing

Media/Asymmetric Warfare: The Ukraine War of 2014-X is an interesting (even if also sad and troubling) example of asymmetic warfare developing into something close to a civil war. The coverage from western news agencies gives a skewed image. That image can be improved to a more balanced take by following the RIA Novosti and ITAR-TASS news agency websites. In addition following certain keywords on Twitter, such as #NAF brings to…

### Nobel Biocare vs Neodent = Nobel Biocare vs Straumann; Drive CM eating into NOBN sales

An interesting development in the dental implant market is taking place. Nobel Biocare yesterday launched a suit against Neodent alleging patent infringement. Straumann owns a stake in Brazil’s Neodent (according to this Reuters article). They bought 49% for CHF 240 million in 2012 with an option to buy 100% within 6 years (2018) (according to swiss financial newspaper Finanz & Wirtschaft). (The link to the orginal press release from Straumann regarding purchase of…

### CIIA: Corporate Finance – WACC, FCF, Value at time T, NWC

Formula help for calculating Free Cash Flows (FCF) Formula help for calculating continuing value of firm. The continuing value needs to be multiplied with 1/(1+WACC)^n    (n is 4)

### CIIA: Derivatives – Cross-Currency Swap Problem

Question Setup Actual Question Formula Collection Solution Note that formula has to be rearranged versus the formula collection as we have borrowed in local currency first. This can be seen in the first paragraph of the question setup (I’d missed it and used the formula as given instead of rearranging to take account of that fact).

### Illustration of Pension Fund Problem – Low Risk Investments with Low Returns

In this CIIA Final Exam question it is easy to see why our pension fund system, which invests large amounts in bonds will not achieve the return targets promised or needed by pensioners currently paying into the system. The returns generated with a high percentage invested in bonds versus the low percentage invested in equity is a proposition that will lead to problems in half of the outcomes, now that central…

### CIIA: Delta-Gamma Option Price Approximation

delta-gamma-approximation Exam question 2013:

### CIIA: Fixed Income – Bond Yield Measures – Find the 1-year and 6-year spot rates 1 year hence

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### CIIA: Option Strategy – Short Strangle Payoff Calculation

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### CIIA: Option Strategy – Butterfly Payoff Calculation

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### Calculating Bond Price with Semi-Annual Coupon Frequency

Calculating Bond Price with Semi-Annual Coupon Frequency