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A snakes and ladders representation of stock prices and returns

Gager, P and Shackleton, M B (2009) A snakes and ladders representation of stock prices and returns. Working Paper. The Department of Accounting and Finance, Lancaster University.

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    Abstract

    Snakes and ladders is an ancient Indian game of chance that offers amusement as well as a metaphor for life’s many ups and downs. Games offer useful and fun ways of conveying ideas as well as solution techniques and this game has considerable mathematical tractability. This note shows how snakes and ladders can be used to represent the ups and downs of share ownership and solve for fair values of a multistage project that pays fixed dividends at uncertain completion times and has random returns.

    Item Type: Monograph (Working Paper)
    Subjects:
    Departments: Lancaster University Management School > Accounting & Finance
    ID Code: 48975
    Deposited By: ep_importer_pure
    Deposited On: 11 Jul 2011 22:26
    Refereed?: No
    Published?: Published
    Last Modified: 19 Mar 2013 11:36
    Identification Number:
    URI: http://eprints.lancs.ac.uk/id/eprint/48975

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