2. This exercise does the same, but now for PE (S, t). (a) Find PE (S1). What does this partial mean if S increases in value? If it as decreases in value? (b) Find PE (S.1). What does this partial mean should r increase? Should r ər decrease? (c) Find PE (S.1). What does this partial mean should the value of o increase? да (The market is more volatile.) Should o decrease? (The market calms down.) (d) Find aPE (S,1) Ət

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