Caltech Undergraduate Research Journal

CURJ is Caltech's award-winning undergraduate research journal, dedicated to highlighting the accomplishments of the numerous undergraduates conducting research at Caltech during the SURF program and throughout the academic year.

Featured Article

Simulating Stock Options

Mona A. Sheikh and Yaser Abu-Mostafa

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JOE BUCKS WORKS FOR WISEINVESTORS, INC. BECAUSE OF HIS outsanding performance last year, his boss gave him a bonus - an option of 2000 shares of company stock. THe option exercise price is $12 a share. Joe will pay this amount for the stock if he exercises his option, called a call option. A year later, the stock's market price has soared to $20 a share, and Joe decides to exercise the option. He pays $24,000 for stock that is currently worth $40,000....