WebAssign Printed Access Card for Aufmann/Lockwood/Nation/Clegg's Mathematical Excursions, 4th Edition, Single-Term
4th Edition
ISBN: 9781337652445
Author: Richard N. Aufmann, Joanne Lockwood, Richard D. Nation, Daniel K. Clegg
Publisher: Cengage Learning
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Chapter 10, Problem 7RE
To determine
To graph:
To graph the given function.
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For each month of the year, Taylor collected the average high temperatures in Jackson, Mississippi. He used the data to create the histogram shown. Which set of data did he use to create the histogram?
A
55, 60, 64, 72, 73, 75, 77, 81, 83, 91, 91, 92\ 55,\ 60,\ 64,\ 72,\ 73,\ 75,\ 77,\ 81,\ 83,\ 91,\ 91,\ 92 55, 60, 64, 72, 73, 75, 77, 81, 83, 91, 91, 92
B
55, 57, 60, 65, 70, 71, 78, 79, 85, 86, 88, 91\ 55,\ 57,\ 60,\ 65,\ 70,\ 71,\ 78,\ 79,\ 85,\ 86,\ 88,\ 91 55, 57, 60, 65, 70, 71, 78, 79, 85, 86, 88, 91
C
55, 60, 63, 64, 65, 71, 83, 87, 88, 88, 89, 93\ 55,\ 60,\ 63,\ 64,\ 65,\ 71,\ 83,\ 87,\ 88,\ 88,\ 89,\ 93 55, 60, 63, 64, 65, 71, 83, 87, 88, 88, 89, 93
D
55, 58, 60, 66, 68, 75, 77, 82, 86, 89, 91, 91\ 55,\ 58,\ 60,\ 66,\ 68,\ 75,\ 77,\ 82,\ 86,\ 89,\ 91,\ 91 55, 58, 60, 66, 68, 75, 77, 82, 86, 89, 91, 91
In this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0
given (under the measure P) by
d.St 0.03 St dt + 0.2 St dwt,
with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to
price an option on this stock (which we name cubic put). This option is European-type, with
maturity 3 months (i.e. T = 0.25 years), and payoff given by
F = (8-5)+
(a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure
Q. (You don't need to prove it, simply give the answer.)
(b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2.
(c) Let X =
S. Find the Stochastic Differential Equation satisfied by the process (Xt)
under the measure Q.
(d) Find an explicit expression for X₁ = S3 under measure Q.
(e) Using the results above, find the price of the cubic put option mentioned above.
(f) Is the price in (e) the same as in question (b)? (Explain why.)
Problem 4. Margrabe formula and the Greeks (20 pts)
In the homework, we determined the Margrabe formula for the price of an option allowing you to
swap an x-stock for a y-stock at time T. For stocks with initial values xo, yo, common volatility
σ and correlation p, the formula was given by
Fo=yo (d+)-x0Þ(d_),
where
In (±²
Ꭲ
d+
õ√T
and
σ = σ√√√2(1 - p).
дго
(a) We want to determine a "Greek" for ỡ on the option: find a formula for
θα
(b) Is
дго
θα
positive or negative?
(c) We consider a situation in which the correlation p between the two stocks increases: what
can you say about the price Fo?
(d) Assume that yo< xo and p = 1. What is the price of the option?
Chapter 10 Solutions
WebAssign Printed Access Card for Aufmann/Lockwood/Nation/Clegg's Mathematical Excursions, 4th Edition, Single-Term
Ch. 10.1 - Prob. 1EECh. 10.1 - Prob. 2EECh. 10.1 - Prob. 3EECh. 10.1 - Prob. 4EECh. 10.1 - Prob. 5EECh. 10.1 - Prob. 1ESCh. 10.1 - Prob. 2ESCh. 10.1 - Draw a line through all points with an...Ch. 10.1 - Draw a line through all points with an...Ch. 10.1 - Draw a line through all points with a y-coordinate...
Ch. 10.1 - Prob. 6ESCh. 10.1 - Graph the ordered-pair solutions of y=x2 when...Ch. 10.1 - Prob. 8ESCh. 10.1 - Prob. 9ESCh. 10.1 - Prob. 10ESCh. 10.1 - Graph the ordered-pair solutions of y=x32 when...Ch. 10.1 - Prob. 12ESCh. 10.1 - In Exercises 13 to 20, graph each equation. y=2x1Ch. 10.1 - Prob. 14ESCh. 10.1 - In Exercises 13 to 20, graph each equation....Ch. 10.1 - Prob. 16ESCh. 10.1 - Prob. 17ESCh. 10.1 - Prob. 18ESCh. 10.1 - Prob. 19ESCh. 10.1 - Prob. 20ESCh. 10.1 - Prob. 21ESCh. 10.1 - Prob. 22ESCh. 10.1 - Evaluate the function for the given value....Ch. 10.1 - Prob. 24ESCh. 10.1 - Prob. 25ESCh. 10.1 - Prob. 26ESCh. 10.1 - Prob. 27ESCh. 10.1 - Prob. 28ESCh. 10.1 - Sports The height h, in feet, of a ball that is...Ch. 10.1 - Prob. 30ESCh. 10.1 - Sound The speed s, in feet per second, of sound in...Ch. 10.1 - Prob. 32ESCh. 10.1 - Pendulums The time T in seconds, it takes a...Ch. 10.1 - Prob. 34ESCh. 10.1 - Prob. 35ESCh. 10.1 - Prob. 36ESCh. 10.1 - Prob. 37ESCh. 10.1 - Prob. 38ESCh. 10.1 - Prob. 39ESCh. 10.1 - Prob. 40ESCh. 10.1 - Graph the function. F(x)=12x+3Ch. 10.1 - Prob. 42ESCh. 10.1 - Graph the function. f(x)=x21Ch. 10.1 - Prob. 44ESCh. 10.1 - Graph the function. f(x)=x2+4Ch. 10.1 - Prob. 46ESCh. 10.1 - Prob. 47ESCh. 10.1 - Prob. 48ESCh. 10.1 - Prob. 49ESCh. 10.1 - Prob. 50ESCh. 10.1 - Prob. 51ESCh. 10.1 - Prob. 52ESCh. 10.1 - Prob. 53ESCh. 10.1 - Prob. 54ESCh. 10.1 - Prob. 55ESCh. 10.1 - Prob. 56ESCh. 10.2 - The graph at the left represents a car traveling...Ch. 10.2 - Prob. 2EECh. 10.2 - Prob. 3EECh. 10.2 - Prob. 4EECh. 10.2 - Prob. 5EECh. 10.2 - Prob. 6EECh. 10.2 - Prob. 7EECh. 10.2 - Prob. 8EECh. 10.2 - Prob. 9EECh. 10.2 - Prob. 10EECh. 10.2 - Prob. 11EECh. 10.2 - Prob. 1ESCh. 10.2 - Prob. 2ESCh. 10.2 - Prob. 3ESCh. 10.2 - Prob. 4ESCh. 10.2 - Find the x- and y-intercepts of thegraph of the...Ch. 10.2 - Prob. 6ESCh. 10.2 - Find the x- and y-intercepts of thegraph of the...Ch. 10.2 - Prob. 8ESCh. 10.2 - Prob. 9ESCh. 10.2 - Prob. 10ESCh. 10.2 - Prob. 11ESCh. 10.2 - Prob. 12ESCh. 10.2 - Prob. 13ESCh. 10.2 - Prob. 14ESCh. 10.2 - Prob. 15ESCh. 10.2 - Travel An approximate linear model that gives the...Ch. 10.2 - Refrigeration The temperature of an object taken...Ch. 10.2 - Retirement Account A retired biologist begins...Ch. 10.2 - Prob. 19ESCh. 10.2 - Prob. 20ESCh. 10.2 - Find the slope of the line containing the two...Ch. 10.2 - Prob. 22ESCh. 10.2 - Find the slope of the line containing the two...Ch. 10.2 - Prob. 24ESCh. 10.2 - Prob. 25ESCh. 10.2 - Prob. 26ESCh. 10.2 - Find the slope of the line containing the two...Ch. 10.2 - Prob. 28ESCh. 10.2 - Prob. 29ESCh. 10.2 - Prob. 30ESCh. 10.2 - Find the slope of the line containing the two...Ch. 10.2 - Prob. 32ESCh. 10.2 - Prob. 33ESCh. 10.2 - Prob. 34ESCh. 10.2 - Travel The graph below shows the relationship...Ch. 10.2 - Depreciation The graph below shows the...Ch. 10.2 - Prob. 37ESCh. 10.2 - Prob. 38ESCh. 10.2 - Panama Canal Ships in the Panama Canal are lowered...Ch. 10.2 - Prob. 40ESCh. 10.2 - Graph the line that passes through the point (2,3)...Ch. 10.2 - Prob. 42ESCh. 10.2 - Graph the line that passes through the point (2,...Ch. 10.2 - Prob. 44ESCh. 10.2 - Graph using the slope and y-intercept. f(x)=23x3Ch. 10.2 - Prob. 46ESCh. 10.2 - Graph using the slope and y-intercept. f(x)=34xCh. 10.2 - Prob. 48ESCh. 10.2 - Graph using the slope and y-intercept. f(x)=32x+6Ch. 10.2 - Prob. 50ESCh. 10.2 - Prob. 51ESCh. 10.2 - Prob. 52ESCh. 10.2 - Prob. 53ESCh. 10.2 - Prob. 54ESCh. 10.2 - Prob. 55ESCh. 10.2 - Prob. 56ESCh. 10.2 - Prob. 57ESCh. 10.2 - Construction When you climb a staircase, the flat...Ch. 10.3 - Write a linear function for the total cost C to...Ch. 10.3 - Write a linear function for the total revenue R...Ch. 10.3 - How many cartridges must the business restore and...Ch. 10.3 - Prob. 4EECh. 10.3 - Suppose the entrepreneurs are successful in their...Ch. 10.3 - Prob. 6EECh. 10.3 - Prob. 7EECh. 10.3 - Find the equation of the line that passes through...Ch. 10.3 - Prob. 2ESCh. 10.3 - Find the equation of the line that passes through...Ch. 10.3 - Prob. 4ESCh. 10.3 - Find the equation of the line that passes through...Ch. 10.3 - Prob. 6ESCh. 10.3 - Find the equation of the line that passes through...Ch. 10.3 - Prob. 8ESCh. 10.3 - Find the equation of the line that passes through...Ch. 10.3 - Prob. 10ESCh. 10.3 - Find the equation of the line that passes through...Ch. 10.3 - Prob. 12ESCh. 10.3 - Find the equation of the line that passes through...Ch. 10.3 - Prob. 14ESCh. 10.3 - Find the equation of the line that passes through...Ch. 10.3 - Prob. 16ESCh. 10.3 - Prob. 17ESCh. 10.3 - Prob. 18ESCh. 10.3 - Construction A general building contractor...Ch. 10.3 - Compensation An account executive receives a base...Ch. 10.3 - Car Sales A manufacturer of economy cars has...Ch. 10.3 - Calculator Sales A manufacturer of graphing...Ch. 10.3 - Test Scores The data in the table below show five...Ch. 10.3 - Prob. 24ESCh. 10.3 - Sports The data in the (able below show the amount...Ch. 10.3 - Prob. 26ESCh. 10.3 - Meteorology A meteorologist studied the maximum...Ch. 10.3 - Zoology A zoologist studied the running speeds of...Ch. 10.3 - Prob. 29ESCh. 10.3 - Prob. 30ESCh. 10.3 - Prob. 31ESCh. 10.3 - Prob. 32ESCh. 10.3 - Prob. 33ESCh. 10.3 - Prob. 34ESCh. 10.3 - Prob. 35ESCh. 10.4 - Find the coordinates of the focus for the parabola...Ch. 10.4 - Prob. 2EECh. 10.4 - Find a flashlight and measure the diameter of its...Ch. 10.4 - Find the vertex of the graph of the equation....Ch. 10.4 - Prob. 2ESCh. 10.4 - Prob. 3ESCh. 10.4 - Prob. 4ESCh. 10.4 - Prob. 5ESCh. 10.4 - Prob. 6ESCh. 10.4 - Find the vertex of the graph of the equation....Ch. 10.4 - Prob. 8ESCh. 10.4 - Find the vertex of the graph of the equation....Ch. 10.4 - Prob. 10ESCh. 10.4 - Find the vertex of the graph of the equation....Ch. 10.4 - Prob. 12ESCh. 10.4 - Prob. 13ESCh. 10.4 - Prob. 14ESCh. 10.4 - Prob. 15ESCh. 10.4 - Prob. 16ESCh. 10.4 - Prob. 17ESCh. 10.4 - Prob. 18ESCh. 10.4 - Find the x-intercepts of the parabola given by the...Ch. 10.4 - Prob. 20ESCh. 10.4 - Prob. 21ESCh. 10.4 - Prob. 22ESCh. 10.4 - Prob. 23ESCh. 10.4 - Prob. 24ESCh. 10.4 - Prob. 25ESCh. 10.4 - Prob. 26ESCh. 10.4 - Prob. 27ESCh. 10.4 - Prob. 28ESCh. 10.4 - Prob. 29ESCh. 10.4 - Prob. 30ESCh. 10.4 - Prob. 31ESCh. 10.4 - Prob. 32ESCh. 10.4 - The graph of which of the following equations is a...Ch. 10.4 - Sports The height s, in feet, of a ball thrown...Ch. 10.4 - Prob. 35ESCh. 10.4 - Prob. 36ESCh. 10.4 - Prob. 37ESCh. 10.4 - Water Treatment A pool is treated with a chemical...Ch. 10.4 - Civil Engineering The suspension cable that...Ch. 10.4 - Prob. 40ESCh. 10.4 - Pitching Karen is throwing an orange to her...Ch. 10.4 - Prob. 42ESCh. 10.4 - Prob. 43ESCh. 10.4 - Stopping Distance On wet concrete, the stopping...Ch. 10.4 - Prob. 45ESCh. 10.4 - Prob. 46ESCh. 10.4 - To prepare astronauts for the experience of zero...Ch. 10.5 - Prob. 1EECh. 10.5 - Prob. 2EECh. 10.5 - If all 64 squares of the chessboard are piled with...Ch. 10.5 - Prob. 4EECh. 10.5 - Prob. 5EECh. 10.5 - Prob. 1ESCh. 10.5 - Prob. 2ESCh. 10.5 - Prob. 3ESCh. 10.5 - Prob. 4ESCh. 10.5 - Prob. 5ESCh. 10.5 - Prob. 6ESCh. 10.5 - Prob. 7ESCh. 10.5 - Given f(x)=e2x, evaluate the following. Roundto...Ch. 10.5 - Prob. 9ESCh. 10.5 - Prob. 10ESCh. 10.5 - Prob. 11ESCh. 10.5 - Prob. 12ESCh. 10.5 - Prob. 13ESCh. 10.5 - Prob. 14ESCh. 10.5 - Prob. 15ESCh. 10.5 - Prob. 16ESCh. 10.5 - Prob. 17ESCh. 10.5 - Prob. 18ESCh. 10.5 - Prob. 19ESCh. 10.5 - Prob. 20ESCh. 10.5 - Prob. 21ESCh. 10.5 - Prob. 22ESCh. 10.5 - Prob. 23ESCh. 10.5 - Prob. 24ESCh. 10.5 - Investments Use the compound interest formula...Ch. 10.5 - Prob. 26ESCh. 10.5 - Prob. 27ESCh. 10.5 - Isotopes An isotope of technetium is used to...Ch. 10.5 - Isotopes lodine- 131 is an isotope that is used...Ch. 10.5 - Prob. 30ESCh. 10.5 - Music The concert A note on a piano is the firstA...Ch. 10.5 - Prob. 32ESCh. 10.5 - Prob. 33ESCh. 10.6 - Prob. 1EECh. 10.6 - Prob. 2EECh. 10.6 - Prob. 3EECh. 10.6 - Prob. 4EECh. 10.6 - Prob. 5EECh. 10.6 - Prob. 1ESCh. 10.6 - Prob. 2ESCh. 10.6 - Write the exponential equation in logarithmic...Ch. 10.6 - Prob. 4ESCh. 10.6 - Prob. 5ESCh. 10.6 - Prob. 6ESCh. 10.6 - Prob. 7ESCh. 10.6 - Prob. 8ESCh. 10.6 - Prob. 9ESCh. 10.6 - Prob. 10ESCh. 10.6 - Prob. 11ESCh. 10.6 - Prob. 12ESCh. 10.6 - Prob. 13ESCh. 10.6 - Prob. 14ESCh. 10.6 - Prob. 15ESCh. 10.6 - Prob. 16ESCh. 10.6 - Prob. 17ESCh. 10.6 - Prob. 18ESCh. 10.6 - Evaluate the logarithm. log100Ch. 10.6 - Prob. 20ESCh. 10.6 - Prob. 21ESCh. 10.6 - Prob. 22ESCh. 10.6 - Prob. 23ESCh. 10.6 - Prob. 24ESCh. 10.6 - Prob. 25ESCh. 10.6 - Prob. 26ESCh. 10.6 - Prob. 27ESCh. 10.6 - Solve the equation for x. log8x=2Ch. 10.6 - Prob. 29ESCh. 10.6 - Prob. 30ESCh. 10.6 - Prob. 31ESCh. 10.6 - Prob. 32ESCh. 10.6 - Prob. 33ESCh. 10.6 - Prob. 34ESCh. 10.6 - Prob. 35ESCh. 10.6 - Prob. 36ESCh. 10.6 - Prob. 37ESCh. 10.6 - Prob. 38ESCh. 10.6 - Prob. 39ESCh. 10.6 - Prob. 40ESCh. 10.6 - Prob. 41ESCh. 10.6 - Prob. 42ESCh. 10.6 - Prob. 43ESCh. 10.6 - Prob. 44ESCh. 10.6 - Prob. 45ESCh. 10.6 - Prob. 46ESCh. 10.6 - Light The percent of light that will pass through...Ch. 10.6 - Light The percent of light that will pass through...Ch. 10.6 - Sound The number of decibels, D, of a sound can be...Ch. 10.6 - Prob. 50ESCh. 10.6 - Prob. 51ESCh. 10.6 - Prob. 52ESCh. 10.6 - Prob. 53ESCh. 10.6 - Prob. 54ESCh. 10.6 - Prob. 55ESCh. 10.6 - Earthquakes. Use the Richter scale equation...Ch. 10.6 - Prob. 57ESCh. 10.6 - Prob. 58ESCh. 10.6 - Prob. 59ESCh. 10.6 - Prob. 60ESCh. 10.6 - Prob. 61ESCh. 10.6 - Prob. 62ESCh. 10.6 - Prob. 63ESCh. 10.6 - Prob. 64ESCh. 10.6 - Prob. 65ESCh. 10 - Draw a line through all points with an...Ch. 10 - Draw a line through all points with y-coordinate...Ch. 10 - Prob. 3RECh. 10 - Prob. 4RECh. 10 - Prob. 5RECh. 10 - Prob. 6RECh. 10 - Prob. 7RECh. 10 - Prob. 8RECh. 10 - Prob. 9RECh. 10 - Prob. 10RECh. 10 - Prob. 11RECh. 10 - Prob. 12RECh. 10 - Prob. 13RECh. 10 - Prob. 14RECh. 10 - Prob. 15RECh. 10 - Prob. 16RECh. 10 - Prob. 17RECh. 10 - Prob. 18RECh. 10 - Prob. 19RECh. 10 - Prob. 20RECh. 10 - Prob. 21RECh. 10 - Prob. 22RECh. 10 - Prob. 23RECh. 10 - Prob. 24RECh. 10 - Prob. 25RECh. 10 - Mixtures The percent concentration P of sugar in a...Ch. 10 - Prob. 27RECh. 10 - Prob. 28RECh. 10 - Prob. 29RECh. 10 - Prob. 30RECh. 10 - Prob. 31RECh. 10 - Prob. 32RECh. 10 - Find the slope of the line containing the given...Ch. 10 - Prob. 34RECh. 10 - Prob. 35RECh. 10 - Fuel Consumption The graph below shows how the...Ch. 10 - Prob. 37RECh. 10 - Prob. 38RECh. 10 - Prob. 39RECh. 10 - Prob. 40RECh. 10 - Prob. 41RECh. 10 - Prob. 42RECh. 10 - Prob. 43RECh. 10 - Prob. 44RECh. 10 - Gasoline Sales The manager of Valley Gas Mart has...Ch. 10 - Prob. 46RECh. 10 - Prob. 47RECh. 10 - Prob. 48RECh. 10 - Prob. 49RECh. 10 - Prob. 50RECh. 10 - Prob. 51RECh. 10 - Prob. 52RECh. 10 - Prob. 53RECh. 10 - Prob. 54RECh. 10 - Find the minimum or maximum value of the quadratic...Ch. 10 - Prob. 56RECh. 10 - Prob. 57RECh. 10 - Prob. 58RECh. 10 - Prob. 59RECh. 10 - Prob. 60RECh. 10 - Isotopes An isotope of technetium has a half-life...Ch. 10 - Prob. 62RECh. 10 - Golf A golf ball is dropped from a height of 6 ft....Ch. 10 - Evaluate the logarithm. log3243Ch. 10 - Prob. 65RECh. 10 - Prob. 66RECh. 10 - Prob. 67RECh. 10 - Prob. 68RECh. 10 - Prob. 69RECh. 10 - Prob. 70RECh. 10 - Prob. 71RECh. 10 - Prob. 72RECh. 10 - Sound The number of decibels, D, of a sound can be...Ch. 10 - Prob. 1TCh. 10 - Prob. 2TCh. 10 - Prob. 3TCh. 10 - Prob. 4TCh. 10 - Prob. 5TCh. 10 - Prob. 6TCh. 10 - Prob. 7TCh. 10 - Prob. 8TCh. 10 - Prob. 9TCh. 10 - Prob. 10TCh. 10 - Prob. 11TCh. 10 - Prob. 12TCh. 10 - Prob. 13TCh. 10 - Prob. 14TCh. 10 - Sports The height h. in feet, of a ball that is...Ch. 10 - Prob. 16TCh. 10 - Prob. 17TCh. 10 - Prob. 18TCh. 10 - A traffic engineer gathered data on the number of...Ch. 10 - Prob. 20T
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