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Series 7 Equations

This document provides formulas for financial calculations related to equity markets. It includes equations for determining outstanding shares, calculating equity in long and short margin accounts, valuing options, and measuring working capital and assets/liabilities on a balance sheet. Key formulas are for outstanding shares, the long margin account, and calculating an option premium as the sum of its intrinsic value and time value.

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984 views

Series 7 Equations

This document provides formulas for financial calculations related to equity markets. It includes equations for determining outstanding shares, calculating equity in long and short margin accounts, valuing options, and measuring working capital and assets/liabilities on a balance sheet. Key formulas are for outstanding shares, the long margin account, and calculating an option premium as the sum of its intrinsic value and time value.

Uploaded by

bradovich4760
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Series 7 Equations

Determine the outstanding shares


Outstanding shares = issued shares treasury stock
Long margin account formula
Long market value (LMV) debit record (DR) = equity (EQ)
Short margin account formula
Short market value (SMV) + equity (EQ) = credit record (CR)
Calculate the time value of an option
Premium (P) = intrinsic value (I) + time value (T)
Balance sheet formula
Assets = liabilities + stockholders equity
Calculate working capital
Working capital = current assets current liabilities
Calculate the time value of an option
Premium (P) = intrinsic value (I) + time value (T)

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