Exercises 48−51 establish rules for null quantification that we can use when a quantified variable does not appear in part of a statement. 50. Establish these logical equivalences, where x does not occur as a free variable in A . Assume that the domain is nonempty. a) SS ∀ x ( A → P ( x ) ) ≡ A → ∀ x P ( x ) b) ∃ x ( A → P ( x ) ) ≡ A → ∃ x P ( x )
Exercises 48−51 establish rules for null quantification that we can use when a quantified variable does not appear in part of a statement. 50. Establish these logical equivalences, where x does not occur as a free variable in A . Assume that the domain is nonempty. a) SS ∀ x ( A → P ( x ) ) ≡ A → ∀ x P ( x ) b) ∃ x ( A → P ( x ) ) ≡ A → ∃ x P ( x )
Solution Summary: The author explains the logical equivalence of the statements forall x(Ato P(x)) and
We consider a one-period market with the following properties: the current stock priceis S0 = 4. At time T = 1 year, the stock has either moved up to S1 = 8 (with probability0.7) or down towards S1 = 2 (with probability 0.3). We consider a call option on thisstock with maturity T = 1 and strike price K = 5. The interest rate on the money marketis 25% yearly.(a) Find the replicating portfolio (φ, ψ) corresponding to this call option.(b) Find the risk-neutral (no-arbitrage) price of this call option.(c) We now consider a put option with maturity T = 1 and strike price K = 3 onthe same market. Find the risk-neutral price of this put option. Reminder: A putoption gives you the right to sell the stock for the strike price K.1(d) An investor with initial capital X0 = 0 wants to invest on this market. He buysα shares of the stock (or sells them if α is negative) and buys β call options (orsells them is β is negative). He invests the cash balance on the money market (orborrows if the amount is…
Determine if the two statements are equivalent using a truth table
Use Pascal's triangle to expand the binomial
(6m+2)^2
Chapter 1 Solutions
Discrete Mathematics and Its Applications ( 8th International Edition ) ISBN:9781260091991
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MFCS unit-1 || Part:1 || JNTU || Well formed formula || propositional calculus || truth tables; Author: Learn with Smily;https://www.youtube.com/watch?v=XV15Q4mCcHc;License: Standard YouTube License, CC-BY