Numerical Methods
Numerical Methods
4th Edition
ISBN: 9780495114765
Author: J. Douglas Faires, BURDEN
Publisher: Cengage Learning
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Chapter 1.2, Problem 1E

a.

To determine

To show: The equation xcosx2x2+3x1=0 has at least one solution in the intervals [0.2,0.3] and [1.2,1.3] .

b.

To determine

To show: The equation (x2)2lnx=0 has at least one solution in the intervals [1,2] and [e,4] .

c.

To determine

To show: The equation 2xcos(2x)(x2)2=0 has at least one solution in the intervals [2,3] and [3,4] .

d.

To determine

To show: The equation x(lnx)x=0 has at least one solution in the interval [4,5] .

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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
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