Thinking Mathematically, Books a la carte Edition plus MyLab Math with Pearson eText -- Access Card Package (6th Edition)
6th Edition
ISBN: 9780321999061
Author: Robert F. Blitzer
Publisher: PEARSON
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Chapter 13.4, Problem 3E
The table shows the populations of three states in a country with a population of 20,000, Use Hamilton’s method to show that the Alabama paradox occurs if the number of seats in congress is increased from 40 to 41.
| State | A | B | C | Total |
| Population | 680 | 9150 | 10,170 | 20,000 |
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Several markets (Japan, Switzerland) introduced negative interest rates on their money market.
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(a) We consider an American put option with strike price K and expiration T. Prove that if
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=
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Ste
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In this problem, we consider a 3-period stock market model with evolution given in Fig. 1 below.
Each period corresponds to one year. The interest rate is r = 0%.
16
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12
8
4
2
time
Figure 1: Stock evolution for Problem 1.
(a) A colleague notices that in the model above, a movement up-down leads to the same value
as a movement down-up. He concludes that the model is a CRR model. Is your colleague
correct? (Explain your answer.)
(b) We consider a European put with strike price K = 10 and expiration T = 3 years. Find
the price of this option at time 0. Provide the replicating portfolio for the first period.
(c) In addition to the call above, we also consider a European call with strike price K = 10
and expiration T = 3 years. Which one has the highest price? (It is not necessary to
provide the price of the call.)
(d) We now assume a yearly interest rate r = 25%. We consider a Bermudan put option with
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Chapter 13 Solutions
Thinking Mathematically, Books a la carte Edition plus MyLab Math with Pearson eText -- Access Card Package (6th Edition)
Ch. 13.1 - CHECK POINT 1 Four candidates are running for...Ch. 13.1 - CHECK POINT 2 Table 13.2 on page 841 shows the...Ch. 13.1 - Prob. 3CPCh. 13.1 - Prob. 4CPCh. 13.1 - CHECK POINT 5 Table 13.2 on page 841 shows the...Ch. 13.1 - Fill in each blank so that the resulting statement...Ch. 13.1 - Fill in each blank so that the resulting statement...Ch. 13.1 - Fill in each blank so that the resulting statement...Ch. 13.1 - Fill in each blank so that the resulting statement...Ch. 13.1 - Fill in each blank so that the resulting statement...
Ch. 13.1 - Prob. 6CVCCh. 13.1 - Fill in each blank so that the resulting statement...Ch. 13.1 - Prob. 8CVCCh. 13.1 - In Exercises 1-2, the preference ballots for three...Ch. 13.1 - In Exercises 1-2, the preference ballots for three...Ch. 13.1 - In Exercises 3-4, four students are running for...Ch. 13.1 - Prob. 4ECh. 13.1 - Your class is given the option of choosing a day...Ch. 13.1 - Prob. 6ECh. 13.1 - Prob. 7ECh. 13.1 - 8. The travel club members are voting for the...Ch. 13.1 - Four professors are running for chair of the...Ch. 13.1 - Prob. 10ECh. 13.1 - Prob. 11ECh. 13.1 - Use the preference table shown in Exercise 8....Ch. 13.1 - Prob. 13ECh. 13.1 - Use the preference table shown in Exercise 10. Who...Ch. 13.1 - Use the preference table shown in Exercise 7....Ch. 13.1 - Use the preference table shown in Exercise 8....Ch. 13.1 - Use the preference table shown in Exercise 9. Who...Ch. 13.1 - Prob. 18ECh. 13.1 - Prob. 19ECh. 13.1 - Prob. 20ECh. 13.1 - In Exercises 19-22, suppose that the pairwise...Ch. 13.1 - Prob. 22ECh. 13.1 - Prob. 23ECh. 13.1 - Prob. 24ECh. 13.1 - Use the preference table shown in Exercise 9. Who...Ch. 13.1 - Prob. 26ECh. 13.1 - In Exercises 27-30, 72 voters are asked to rank...Ch. 13.1 - Prob. 28ECh. 13.1 - In Exercises 27-30, 72 voters are asked to rank...Ch. 13.1 - In Exercises 27-30, 72 voters are asked to rank...Ch. 13.1 - Prob. 31ECh. 13.1 - Prob. 32ECh. 13.1 - Prob. 33ECh. 13.1 - The programmers at the Theater Channel need to...Ch. 13.1 - 35. Five candidates. A, B, C, D, and E, are...Ch. 13.1 - Prob. 36ECh. 13.1 - Prob. 37ECh. 13.1 - Three candidates, A, B, and C, are running for...Ch. 13.1 - What is a preference ballot?Ch. 13.1 - Prob. 40ECh. 13.1 - Prob. 41ECh. 13.1 - 42. Describe the Borda count method. Is it...Ch. 13.1 - What is the plurality-with-elimination method? Why...Ch. 13.1 - What is the pairwise comparison method? Is it...Ch. 13.1 - Prob. 45ECh. 13.1 - Prob. 46ECh. 13.1 - Prob. 47ECh. 13.1 - Prob. 48ECh. 13.1 - Prob. 49ECh. 13.1 - Make Sense? In Exercises 49-52, determine whether...Ch. 13.1 - Make Sense? In Exercises 49-52, determine whether...Ch. 13.1 - Prob. 52ECh. 13.1 - Prob. 53ECh. 13.1 - In Exercises 53-56, construct a preference table...Ch. 13.1 - Prob. 55ECh. 13.1 - In Exercises 53-56, construct a preference table...Ch. 13.1 - 57. Research and present a group report on how...Ch. 13.1 - Research and present a group report on how voting...Ch. 13.2 - CHECK POINT I The 14 members of the school board...Ch. 13.2 - Prob. 2CPCh. 13.2 - CHECK POINT 3 An election with 120 voters and...Ch. 13.2 - Prob. 4CPCh. 13.2 - Fill in each blank so that the resulting statement...Ch. 13.2 - Fill in each blank so that the resulting statement...Ch. 13.2 - Fill in each blank so that the resulting statement...Ch. 13.2 - Prob. 4CVCCh. 13.2 - Prob. 5CVCCh. 13.2 - Fill in each blank so that the resulting statement...Ch. 13.2 - Voters in a small town are considering four...Ch. 13.2 - 2. Fifty-three people are asked to taste-test and...Ch. 13.2 - Prob. 3ECh. 13.2 - Prob. 4ECh. 13.2 - A town is voting on an ordinance dealing with...Ch. 13.2 - A town is voting on an ordinance dealing with...Ch. 13.2 - 7. The following preference table gives the...Ch. 13.2 - Prob. 8ECh. 13.2 - 9. Members of the Student Activity Committee at a...Ch. 13.2 - Prob. 10ECh. 13.2 - Prob. 11ECh. 13.2 - Prob. 12ECh. 13.2 - In Exercises 11-18, the preference table for an...Ch. 13.2 - Prob. 14ECh. 13.2 - In Exercises 11-18, the preference table for an...Ch. 13.2 - In Exercises 11-18, the preference table for an...Ch. 13.2 - In Exercises 11-18, the preference table for an...Ch. 13.2 - Prob. 18ECh. 13.2 - Prob. 19ECh. 13.2 - Describe the majority criterion.Ch. 13.2 - Describe the head-to-head criterion.Ch. 13.2 - Describe the monotonicity criterion.Ch. 13.2 - 23. Describe the irrelevant alternatives...Ch. 13.2 - 24. In your own words, state Arrow’s Impossibility...Ch. 13.2 - Prob. 25ECh. 13.2 - Is it possible to have election results using a...Ch. 13.2 - Prob. 27ECh. 13.2 - Prob. 28ECh. 13.2 - Make Sense? In Exercises 28-31, determine whether...Ch. 13.2 - Prob. 30ECh. 13.2 - Make Sense? In Exercises 28-31, determine whether...Ch. 13.2 - Prob. 32ECh. 13.2 - Prob. 33ECh. 13.2 - Prob. 34ECh. 13.2 - Prob. 35ECh. 13.2 - Citizen-initiated ballot measures often present...Ch. 13.3 - CHECK POINT 1 The Republic of Amador is composed...Ch. 13.3 - CHECK POINT 2 Refer to Check Point 1 on page 865....Ch. 13.3 - Prob. 3CPCh. 13.3 - Prob. 4CPCh. 13.3 - Prob. 5CPCh. 13.3 - Fill in each blank so that the resulting statement...Ch. 13.3 - Fill in each blank so that the resulting statement...Ch. 13.3 - Fill in each blank so that the resulting statement...Ch. 13.3 - Prob. 4CVCCh. 13.3 - Prob. 5CVCCh. 13.3 - Fill in each blank so that the resulting statement...Ch. 13.3 - Fill in each blank so that the resulting statement...Ch. 13.3 - Throughout this Exercise Set, in computing...Ch. 13.3 - Throughout this Exercise Set, in computing...Ch. 13.3 - Throughout this Exercise Set, in computing...Ch. 13.3 - Throughout this Exercise Set, in computing...Ch. 13.3 - A university is composed of five schools. The...Ch. 13.3 - Prob. 6ECh. 13.3 - 7. A small country is composed of five states. A,...Ch. 13.3 - 8. A small country is comprised of four states, A,...Ch. 13.3 - Prob. 9ECh. 13.3 - Prob. 10ECh. 13.3 - The police department in a large city has 180 new...Ch. 13.3 - Prob. 12ECh. 13.3 - Prob. 13ECh. 13.3 - Prob. 14ECh. 13.3 - 15. Twenty sections of bilingual math courses,...Ch. 13.3 - Prob. 16ECh. 13.3 - A rapid transit service operates 200 buses along...Ch. 13.3 - Refer to Exercise 11. Use Webster’s method to...Ch. 13.3 - A hospital has a nursing staff of 250 nurses...Ch. 13.3 - A hospital has a nursing staff of 250 nurses...Ch. 13.3 - A hospital has a nursing staff of 250 nurses...Ch. 13.3 - A hospital has a nursing staff of 250 nurses...Ch. 13.3 - The table shows the 1790 United States census. In...Ch. 13.3 - Prob. 24ECh. 13.3 - Prob. 25ECh. 13.3 - Prob. 26ECh. 13.3 - 27. Describe how to find a standard divisor.
Ch. 13.3 - 28. Describe how to determine a standard quota for...Ch. 13.3 - Prob. 29ECh. 13.3 - Prob. 30ECh. 13.3 - Describe the apportionment problem.Ch. 13.3 - Prob. 32ECh. 13.3 - Prob. 33ECh. 13.3 - Explain why Hamilton’s method satisfies the quota...Ch. 13.3 - Prob. 35ECh. 13.3 - Suppose that you guess at a modified divisor, d,...Ch. 13.3 - Describe the difference between the modified...Ch. 13.3 - In allocating congressional seats, how does...Ch. 13.3 - 39. How are modified quotas rounded using...Ch. 13.3 - Why might it take longer to guess at a modified...Ch. 13.3 - In this Exercise Set, we have used apportionment...Ch. 13.3 - Prob. 42ECh. 13.3 - Make Sense? In Exercises 42-45, determine whether...Ch. 13.3 - Make Sense? In Exercises 42-45, determine whether...Ch. 13.3 - Prob. 45ECh. 13.3 - Prob. 46ECh. 13.3 - Prob. 47ECh. 13.3 - Prob. 48ECh. 13.3 - A small country is composed of three states, A, B,...Ch. 13.3 - Prob. 50ECh. 13.3 - Research and present a group| report on a brief...Ch. 13.4 - CHECK POINT I Table 13.42 shows the populations of...Ch. 13.4 - CHECK POINT 2 A small country has 100 seats in the...Ch. 13.4 - Prob. 3CPCh. 13.4 - Prob. 1CVCCh. 13.4 - Prob. 2CVCCh. 13.4 - Prob. 3CVCCh. 13.4 - Prob. 4CVCCh. 13.4 - 1. The mathematics department has 30 teaching...Ch. 13.4 - 2. A school district has 57 new laptop computers...Ch. 13.4 - 3. The table shows the populations of three states...Ch. 13.4 - The table at the top of the next column shows the...Ch. 13.4 - A small country has 24 seats in the congress,...Ch. 13.4 - Prob. 6ECh. 13.4 - 7. A town has 40 mail trucks and four districts in...Ch. 13.4 - 8. A town has five districts in which mail is...Ch. 13.4 - A corporation has two branches A and B. Each year...Ch. 13.4 - 10. A corporation has three branches, A, B, and C...Ch. 13.4 - Prob. 11ECh. 13.4 - a. A country has three states, state A, with a...Ch. 13.4 - 13. In Exercise 12, use Jefferson’s method with ...Ch. 13.4 - Prob. 14ECh. 13.4 - Prob. 15ECh. 13.4 - What is the new-states paradox?Ch. 13.4 - 17. According to Balinski and Young’s...Ch. 13.4 - Make Sense? In Exercises 18-21, determine whether...Ch. 13.4 - Prob. 19ECh. 13.4 - Prob. 20ECh. 13.4 - Make Sense? In Exercises 18-21, determine whether...Ch. 13.4 - Give an example of a country with three states in...Ch. 13 - In Exercises 1-8, three candidates, A, B, and C,...Ch. 13 - In Exercises 1-8, three candidates, A, B, and C,...Ch. 13 - In Exercises 1-8, three candidates, A, B, and C,...Ch. 13 - In Exercises 1-8, three candidates, A, B, and C,...Ch. 13 - In Exercises 1–8, three candidates, A, B, and C,...Ch. 13 - In Exercises 1–8, three candidates, A, B, and C,...Ch. 13 - In Exercises 1-8, three candidates, A, B, and C,...Ch. 13 - In Exercises 1-8, three candidates A, B, and C,...Ch. 13 - Use the following preference table to solve...Ch. 13 - Use the following preference table to solve...Ch. 13 - Use the following preference table to solve...Ch. 13 - Prob. 12TCh. 13 - Prob. 13TCh. 13 - Prob. 14TCh. 13 - Prob. 15TCh. 13 - Prob. 16TCh. 13 - In Exercises 16-24, an HMO has 10 doctors to be...Ch. 13 - Prob. 18TCh. 13 - Prob. 19TCh. 13 - Prob. 20TCh. 13 - Prob. 21TCh. 13 - Prob. 22TCh. 13 - Prob. 23TCh. 13 - In Exercises 16-24, an HMO has 10 doctors to be...Ch. 13 - 25. Write one sentence for a person not familiar...Ch. 13 - 1. The 12 preference ballots for four candidates...Ch. 13 - (In Exercises 2-5, be sure to refer to the...Ch. 13 - (In Exercises 2-5, be sure to refer to the...Ch. 13 - (In Exercises 2-5, be sure to refer to the...Ch. 13 - (In Exercises 2-5, be sure to refer to the...Ch. 13 - Prob. 6RECh. 13 - In Exercises 6-9, the Theater Society members are...Ch. 13 - In Exercises 6-9, the Theater Society members are...Ch. 13 - Prob. 9RECh. 13 - Prob. 10RECh. 13 - Prob. 11RECh. 13 - Prob. 12RECh. 13 - In Exercises 10-13, four candidates, A, B, C, and...Ch. 13 - In Exercises 14-16, voters in a small town are...Ch. 13 - In Exercises 14-16, voters in a small town are...Ch. 13 - Prob. 16RECh. 13 - Prob. 17RECh. 13 - Prob. 18RECh. 13 - Prob. 19RECh. 13 - Use the following preference table to solve...Ch. 13 - Prob. 21RECh. 13 - Prob. 22RECh. 13 - Prob. 23RECh. 13 - Prob. 24RECh. 13 - Use the following preference table, which shows...Ch. 13 - Prob. 26RECh. 13 - Prob. 27RECh. 13 - Prob. 28RECh. 13 - Prob. 29RECh. 13 - Prob. 30RECh. 13 - Prob. 31RECh. 13 - Prob. 32RECh. 13 - Prob. 33RECh. 13 - Prob. 34RECh. 13 - Prob. 35RECh. 13 - Prob. 36RECh. 13 - Prob. 37RECh. 13 - Prob. 38RECh. 13 - In Exercises 37-40, a country is composed of four...Ch. 13 - Prob. 40RECh. 13 - Prob. 41RECh. 13 - A country has 100 seats in the congress, divided...Ch. 13 - Prob. 43RECh. 13 - Is the following statement true or false? There...
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