MyLab Math with Pearson eText -- Access Card -- for Using & Understanding Mathematics with Integrated Review
7th Edition
ISBN: 9780134715865
Author: Jeffrey O. Bennett, William L. Briggs
Publisher: PEARSON
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Chapter 10.B, Problem 13E
To determine
If the statement below makes sense or does not make sense.
“The sides of a triangle A are half as long as the corresponding sides of triangle B. Therefore the two triangles are similar.”
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Students have asked these similar questions
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?
The Course Name Real Analysis please Solve questions by Real Analysis
Chapter 10 Solutions
MyLab Math with Pearson eText -- Access Card -- for Using & Understanding Mathematics with Integrated Review
Ch. 10.A - Prob. 1QQCh. 10.A - Prob. 2QQCh. 10.A - An acute angle is a. less than 90°. b. exactly...Ch. 10.A - 4. A regular polygon always has
a. four sides. b....Ch. 10.A - 5. A right triangle always has
three equal-length...Ch. 10.A - 6. The circumference of a circle of radius r...Ch. 10.A - The volume of a sphere of radius r is a. \[\pi...Ch. 10.A - Prob. 8QQCh. 10.A - If you triple the radius of a sphere, the volume...Ch. 10.A - Suppose you cut a large stone block into four...
Ch. 10.A - What do we mean by Euclidean geometry?Ch. 10.A - Prob. 2ECh. 10.A - What do we mean by dimension? How is dimension...Ch. 10.A - Prob. 4ECh. 10.A - What is plane geometry? What does it mean for...Ch. 10.A - 6. What is a polygon? How do we measure the...Ch. 10.A - What are the formulas for the circumference and...Ch. 10.A - 8. Describe how we calculate the volumes and...Ch. 10.A - What are the scaling laws for area and volume?...Ch. 10.A - Prob. 10ECh. 10.A - Prob. 11ECh. 10.A - Prob. 12ECh. 10.A - My bedroom is a rectangular prism that measures 12...Ch. 10.A - walked around the circular pond to a point on the...Ch. 10.A - Prob. 15ECh. 10.A - 16. By building a fence across my rectangular...Ch. 10.A - Prob. 17ECh. 10.A - Prob. 18ECh. 10.A - Angles and Circles. Find the degree measure of the...Ch. 10.A - 17-22: Angles and Circles. Find the degree measure...Ch. 10.A - 17-22: Angles and Circles. Find the degree measure...Ch. 10.A - 17-22: Angles and Circles. Find the degree measure...Ch. 10.A - Prob. 23ECh. 10.A - Prob. 24ECh. 10.A - Prob. 25ECh. 10.A - Prob. 26ECh. 10.A - Prob. 27ECh. 10.A - Prob. 28ECh. 10.A - Prob. 29ECh. 10.A - Prob. 30ECh. 10.A - Circle Practice. Find the circumference and area...Ch. 10.A - Prob. 32ECh. 10.A - Circle Practice. Find the circumference and area...Ch. 10.A - 31-36: Circle Practice. Find the circumference and...Ch. 10.A - Circle Practice. Find the circumference and area...Ch. 10.A - Prob. 36ECh. 10.A - Prob. 37ECh. 10.A - Prob. 38ECh. 10.A - Perimeters and Areas. Use Table 10.2 to find the...Ch. 10.A - Prob. 40ECh. 10.A - Prob. 41ECh. 10.A - Prob. 42ECh. 10.A - Triangle Geometry. Find the perimeter and area of...Ch. 10.A - Prob. 44ECh. 10.A - 43-46: Triangle Geometry. Find the perimeter and...Ch. 10.A - 43-46: Triangle Geometry. Find the perimeter and...Ch. 10.A - Window Space. A picture window has a length of 8...Ch. 10.A - A Running Track. A running track has straight legs...Ch. 10.A - Building Stairs. Refer to Figure 10.14, showing...Ch. 10.A - No Calculation Required. The end views of two...Ch. 10.A - Parking Lot. A parking lot is shaped like a...Ch. 10.A - Prob. 52ECh. 10.A - Prob. 53ECh. 10.A - 53-57: Three-Dimensional Objects. Use the formulas...Ch. 10.A - Three-Dimensional Objects. Use the formulas in...Ch. 10.A - Prob. 56ECh. 10.A - Prob. 57ECh. 10.A - 58. Water Canal. A water canal has a rectangular...Ch. 10.A - 59. Water Reservoir. The water reservoir for a...Ch. 10.A - 60. Oil Drums. Which holds more: an oil drum with...Ch. 10.A - Tree Volumes. Is there more wood in a 40-foot-high...Ch. 10.A - Architectural Model. Suppose you build an...Ch. 10.A - Architectural Model: Suppose you build an...Ch. 10.A - Prob. 64ECh. 10.A - Architectural Model: Suppose you build an...Ch. 10.A - Prob. 66ECh. 10.A - Architectural Model: Suppose you build an...Ch. 10.A - Prob. 68ECh. 10.A - Quadrupling Your Size. Suppose you magically...Ch. 10.A - Quadrupling Your Size. Suppose you magically...Ch. 10.A - Quadrupling Your Size. Suppose you magically...Ch. 10.A - 72-74: Comparing People. Consider a person named...Ch. 10.A - 72-74: Comparing People. Consider a person named...Ch. 10.A - Prob. 74ECh. 10.A - Squirrels or People? Squirrels and humans are both...Ch. 10.A - 75-76: Squirrels or People? Squirrels and humans...Ch. 10.A - Prob. 77ECh. 10.A - Prob. 78ECh. 10.A - Comparing Balls. Consider a softball with a radius...Ch. 10.A - Prob. 80ECh. 10.A - Dimension. Examine a closed book. How many...Ch. 10.A - Perpendicular and Parallel. Suppose you mark a...Ch. 10.A - Perpendicular and Parallel. Suppose you draw two...Ch. 10.A - Backyard. Figure 10.25 shows the layout of a...Ch. 10.A - Human Lung. The human lung has approximately 300...Ch. 10.A - 86. Automobile Engine Capacity. The size of a car...Ch. 10.A - 87. The Chunnel. The English Channel Tunnel, or...Ch. 10.A - Prob. 88ECh. 10.A - Prob. 89ECh. 10.A - Prob. 90ECh. 10.A - The Geometry of Ancient Cultures. Research the use...Ch. 10.A - Surveying and GIS. Surveying is one of the oldest...Ch. 10.A - Platonic Solids. Why are there five and only five...Ch. 10.B - The number of minutes of are in a full circle is...Ch. 10.B - Prob. 2QQCh. 10.B - If you travel due east, you are traveling along a...Ch. 10.B - 4. If you are located at latitude 30°S and...Ch. 10.B - What would be different about the Sun if you...Ch. 10.B - Prob. 6QQCh. 10.B - If you are bicycling eastward up a hill with a 10%...Ch. 10.B - Prob. 8QQCh. 10.B - Prob. 9QQCh. 10.B - Prob. 10QQCh. 10.B - How do we describe fractions of a degree of angle?Ch. 10.B - Prob. 2ECh. 10.B - How is angular size related to physical size?Ch. 10.B - Prob. 4ECh. 10.B - Give at least two examples of ways in which the...Ch. 10.B - Prob. 6ECh. 10.B - Give an example of a practical problem that can be...Ch. 10.B - 8. What is an optimization problem? Give an...Ch. 10.B - 9. In December, it is winter at 70oW and 44oS.
Ch. 10.B - Prob. 10ECh. 10.B - Prob. 11ECh. 10.B - Prob. 12ECh. 10.B - Prob. 13ECh. 10.B - Prob. 14ECh. 10.B - Angle Conversions I. Convert the given degree...Ch. 10.B - 15-20: Angle Conversions I. Convert the given...Ch. 10.B - Prob. 17ECh. 10.B - Prob. 18ECh. 10.B - Prob. 19ECh. 10.B - Angle Conversions I. Convert the given degree...Ch. 10.B - 21-26: Angle Conversions II. Convert the given...Ch. 10.B - 21-26: Angle Conversions II. Convert the given...Ch. 10.B - Prob. 23ECh. 10.B - Prob. 24ECh. 10.B - Angle Conversions II. Convert the given angle...Ch. 10.B - Prob. 26ECh. 10.B - Prob. 27ECh. 10.B - Prob. 28ECh. 10.B - Prob. 29ECh. 10.B - Prob. 30ECh. 10.B - Prob. 31ECh. 10.B - Prob. 32ECh. 10.B - Prob. 33ECh. 10.B - Prob. 34ECh. 10.B - Prob. 35ECh. 10.B - Prob. 36ECh. 10.B - Angular Size. Use the formula relating angular...Ch. 10.B - Angular Size. Use the formula relating angular...Ch. 10.B - Angular Size. Use the formula relating angular...Ch. 10.B - Prob. 40ECh. 10.B - Prob. 41ECh. 10.B - Prob. 42ECh. 10.B - Prob. 43ECh. 10.B - Prob. 44ECh. 10.B - Prob. 45ECh. 10.B - 46. Grade of a Road. How much does a road with a...Ch. 10.B - 47. Pitch of a Roof. What is the angle (relative...Ch. 10.B - Grade of a Path. What is the approximate grade...Ch. 10.B - Prob. 49ECh. 10.B - Grade of a Trail. How much does a trail with a 22%...Ch. 10.B - Map Distances. Refer to the map in Figure 10.37....Ch. 10.B - Prob. 52ECh. 10.B - Prob. 53ECh. 10.B - Prob. 54ECh. 10.B - Prob. 55ECh. 10.B - Map Distances. Refer to the map in Figure 10.37....Ch. 10.B - Prob. 57ECh. 10.B - Prob. 58ECh. 10.B - 57-60: Acreage Problems. Refer to Figure 10.31,...Ch. 10.B - Acreage Problems. Refer to Figure 10.31, but use...Ch. 10.B - 61-64: Determining Similarity. Determine which...Ch. 10.B - Prob. 62ECh. 10.B - Prob. 63ECh. 10.B - Prob. 64ECh. 10.B - Prob. 65ECh. 10.B - Analyzing Similar Triangles. Determine the lengths...Ch. 10.B - Analyzing Similar Triangles. Determine the lengths...Ch. 10.B - Prob. 68ECh. 10.B - Solar Access. Assume that the policy given In...Ch. 10.B - Solar Access. Assume that the policy given In...Ch. 10.B - Solar Access. Assume that the policy given in...Ch. 10.B - Solar Access. Assume that the policy given in...Ch. 10.B - Prob. 73ECh. 10.B - Prob. 74ECh. 10.B - Prob. 75ECh. 10.B - Prob. 76ECh. 10.B - Prob. 77ECh. 10.B - Designing Plastic Buckets. A company manufactures...Ch. 10.B - Designing Cardboard Boxes. Suppose you are...Ch. 10.B - Designing Steel Safes. A large steel sale with a...Ch. 10.B - Blu-ray Geometry. The capacity of a single-sided,...Ch. 10.B - Prob. 82ECh. 10.B - Prob. 83ECh. 10.B - Prob. 84ECh. 10.B - Prob. 85ECh. 10.B - Prob. 86ECh. 10.B - Prob. 87ECh. 10.B - Filling a Pool. A spherical water tank has a...Ch. 10.B - Prob. 89ECh. 10.B - Prob. 90ECh. 10.B - Prob. 91ECh. 10.B - 92. Estimating Heights. In trying in estimate the...Ch. 10.B - 93. Soda Can Design. Standard soft drink cans hold...Ch. 10.B - 94. Melting Ice. A glaciers surface is...Ch. 10.B - Prob. 95ECh. 10.B - Prob. 96ECh. 10.B - Prob. 97ECh. 10.B - Prob. 98ECh. 10.B - Prob. 99ECh. 10.B - Prob. 100ECh. 10.C - Fractal geometry is useful because it is the only...Ch. 10.C - Prob. 2QQCh. 10.C - Prob. 3QQCh. 10.C - Which of the following is a general characteristic...Ch. 10.C - How do fractal dimensions differ from in Euclidean...Ch. 10.C - 6. An island coastline has a fractal dimension...Ch. 10.C - Prob. 7QQCh. 10.C - Prob. 8QQCh. 10.C - Prob. 9QQCh. 10.C - Prob. 10QQCh. 10.C - Prob. 1ECh. 10.C - Prob. 2ECh. 10.C - Explain the meaning of the factors R and N used in...Ch. 10.C - What is the snowflake curve? Explain why we cannot...Ch. 10.C - Prob. 5ECh. 10.C - Prob. 6ECh. 10.C - Briefly describe what we mean by the process of...Ch. 10.C - 8. What is random iteration? Why do objects...Ch. 10.C - 9. I can use a yardstick to find the area of my...Ch. 10.C - I can use a yardstick to measure the length of the...Ch. 10.C - The area of the snowflake island is given by its...Ch. 10.C - Prob. 12ECh. 10.C - The edge of this leaf has a fractal dimension of...Ch. 10.C - This entire leaf, riddled with holes, has a...Ch. 10.C - Prob. 15ECh. 10.C - Prob. 16ECh. 10.C - Prob. 17ECh. 10.C - Prob. 18ECh. 10.C - Prob. 19ECh. 10.C - Prob. 20ECh. 10.C - 15-26: Ordinary and Fractal Dimensions. Find the...Ch. 10.C - 15-26: Ordinary and Fractal Dimensions. Find the...Ch. 10.C - 15-26: Ordinary and Fractal Dimensions. Find the...Ch. 10.C - Prob. 24ECh. 10.C - Prob. 25ECh. 10.C - Prob. 26ECh. 10.C - Prob. 27ECh. 10.C - Prob. 28ECh. 10.C - Prob. 29ECh. 10.C - Prob. 30ECh. 10.C - Prob. 31ECh. 10.C - Prob. 32ECh. 10.C - Prob. 33ECh. 10.C - Fractal Research. Locate at least two websites...Ch. 10.C - 35. Fractal Art. Visit a website that features...
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