Mathematical Ideas with Integrated Review and Worksheets plus NEW MyLab Math with Pearson eText -- Access Card Package (Integrated Review Courses in MyLab Math and MyLab Statistics)
1st Edition
ISBN: 9780321977274
Author: Miller, Charles, Heeren, Vern, HORNSBY, John, Christopher
Publisher: PEARSON
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Textbook Question
Chapter 14.1, Problem 2E
Vertices and Edges In Exercises 1-6, determine how many vertices and how many edges each graph has.
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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
We consider a 4-dimensional stock price model given (under P) by
dẴ₁ = µ· Xt dt + йt · ΣdŴt
where (W) is an n-dimensional Brownian motion,
π = (0.02, 0.01, -0.02, 0.05),
0.2
0
0
0
0.3
0.4
0
0
Σ=
-0.1
-4a За
0
0.2
0.4 -0.1 0.2)
and a E R. We assume that ☑0 = (1, 1, 1, 1) and that the interest rate on the market is r = 0.02.
(a) Give a condition on a that would make stock #3 be the one with largest volatility.
(b) Find the diversification coefficient for this portfolio as a function of a.
(c) Determine the maximum diversification coefficient d that you could reach by varying the
value of a?
2
Chapter 14 Solutions
Mathematical Ideas with Integrated Review and Worksheets plus NEW MyLab Math with Pearson eText -- Access Card Package (Integrated Review Courses in MyLab Math and MyLab Statistics)
Ch. 14.1 - Vertices and Edges In Exercises 1-6, determine how...Ch. 14.1 - Vertices and Edges In Exercises 1-6, determine how...Ch. 14.1 - Vertices and Edges In Exercises 1-6, determine how...Ch. 14.1 - Prob. 4ECh. 14.1 - Prob. 5ECh. 14.1 - Prob. 6ECh. 14.1 - Prob. 7ECh. 14.1 - Prob. 8ECh. 14.1 - Prob. 9ECh. 14.1 - Prob. 10E
Ch. 14.1 - Prob. 11ECh. 14.1 - Prob. 12ECh. 14.1 - Prob. 13ECh. 14.1 - Prob. 14ECh. 14.1 - Prob. 15ECh. 14.1 - Prob. 16ECh. 14.1 - Prob. 17ECh. 14.1 - Prob. 18ECh. 14.1 - Prob. 19ECh. 14.1 - Prob. 20ECh. 14.1 - Prob. 21ECh. 14.1 - Prob. 22ECh. 14.1 - Prob. 23ECh. 14.1 - Prob. 24ECh. 14.1 - Prob. 25ECh. 14.1 - Number of Edges In Exercises 23-26, use the...Ch. 14.1 - Prob. 27ECh. 14.1 - Prob. 28ECh. 14.1 - Prob. 29ECh. 14.1 - Prob. 30ECh. 14.1 - Prob. 31ECh. 14.1 - Prob. 32ECh. 14.1 - Prob. 33ECh. 14.1 - Prob. 34ECh. 14.1 - Prob. 35ECh. 14.1 - Prob. 36ECh. 14.1 - Prob. 37ECh. 14.1 - Prob. 38ECh. 14.1 - Prob. 39ECh. 14.1 - Prob. 40ECh. 14.1 - Prob. 41ECh. 14.1 - Prob. 42ECh. 14.1 - Prob. 43ECh. 14.1 - 44. Chess Competition Students from two schools...Ch. 14.1 - Prob. 45ECh. 14.1 - Prob. 46ECh. 14.1 - Prob. 47ECh. 14.1 - Number of Handshakes There are seven people at a...Ch. 14.1 - Prob. 49ECh. 14.1 - Prob. 50ECh. 14.1 - Prob. 51ECh. 14.1 - 52. Students in the Same Class Mary, Erin, Sue,...Ch. 14.1 - Here is another theorem about graphs: In any...Ch. 14.1 - Draw two nonisomorphic (simple) graphs with 6...Ch. 14.1 - Explain why the two graphs drawn in Exercise 54...Ch. 14.1 - Analyzing a Cube with a Graph Draw a graph whose...Ch. 14.1 - Prob. 57ECh. 14.1 - Prob. 58ECh. 14.1 - Prob. 59ECh. 14.1 - Prob. 60ECh. 14.1 - Prob. 61ECh. 14.1 - Prob. 62ECh. 14.1 - Prob. 63ECh. 14.1 - Prob. 64ECh. 14.1 - Prob. 65ECh. 14.1 - Prob. 66ECh. 14.1 - Prob. 67ECh. 14.1 - Prob. 68ECh. 14.1 - Prob. 69ECh. 14.1 - Prob. 70ECh. 14.1 - 71. Inviting Colleagues to a Gathering Several of...Ch. 14.1 - Prob. 72ECh. 14.1 - Prob. 73ECh. 14.1 - Prob. 74ECh. 14.1 - Prob. 75ECh. 14.1 - Graph Coloring In Exercises 75 and 76, draw a...Ch. 14.1 - Prob. 77ECh. 14.1 - Prob. 78ECh. 14.1 - Prob. 79ECh. 14.1 - Prob. 80ECh. 14.1 - Prob. 81ECh. 14.1 - Prob. 82ECh. 14.1 - The Six Degrees of Kevin Bacon Use the Web site...Ch. 14.1 - The Six Degrees of Kevin BaconUse the Web site...Ch. 14.1 - The Six Degrees of Kevin BaconUse the Web site...Ch. 14.1 - The Six Degrees of Kevin Bacon Use the Web...Ch. 14.1 - The Six Degrees of Kevin Bacon Use the Web...Ch. 14.1 - The Six Degrees of Kevin Bacon Use the Web site...Ch. 14.1 - The Six Degrees of Kevin BaconUse the Web site...Ch. 14.1 - The Six Degrees of Kevin BaconUse the Web site...Ch. 14.1 - The Six Degrees of Kevin BaconUse the Web site...Ch. 14.1 - The Six Degrees of Kevin BaconUse the Web site...Ch. 14.1 - 93. Lines from She Walks in Beauty, by Lord...Ch. 14.1 - 94. Lines from Annabel Lee, by Edgar Allan Poe
It...Ch. 14.1 - Poetry Analysis Graphs may be used to clarify the...Ch. 14.1 - 96. Lines from Sailing to Byzantium, by William...Ch. 14.2 - Euler Circuits. In Exercises 1-3, a graph is shown...Ch. 14.2 - Prob. 2ECh. 14.2 - Euler Circuits In Exercises 1-3, a graph is shown...Ch. 14.2 - Prob. 4ECh. 14.2 - Euler's Theorem In Exercises 4-8, use Eulers...Ch. 14.2 - Prob. 6ECh. 14.2 - Euler's Theorem.In Exercises 4-8, use Eider's...Ch. 14.2 - Prob. 8ECh. 14.2 - Euler's Theorem In Exercises 9 and 10, use Eider's...Ch. 14.2 - Prob. 10ECh. 14.2 - Euler's Theorem In Exercises 11-14, use Eider's...Ch. 14.2 - Prob. 12ECh. 14.2 - Euler's Theorem In Exercises 11-14, use Euler's...Ch. 14.2 - Prob. 14ECh. 14.2 - Floor Tilings In Exercises 15-18, different floor...Ch. 14.2 - Prob. 16ECh. 14.2 - Floor Tilings In Exercises 15-18, different floor...Ch. 14.2 - Prob. 18ECh. 14.2 - Prob. 19ECh. 14.2 - Prob. 20ECh. 14.2 - Prob. 21ECh. 14.2 - Prob. 22ECh. 14.2 - Fleury's Algorithm In Exercises 23-25, a graph is...Ch. 14.2 - Prob. 24ECh. 14.2 - Prob. 25ECh. 14.2 - Prob. 26ECh. 14.2 - Fleury's Algorithm In Exercises 26-28\ use...Ch. 14.2 - Prob. 28ECh. 14.2 - Euler's Theorem and Fleury's Algorithm In...Ch. 14.2 - Euler's Theorem and Fleury's Algorithm In...Ch. 14.2 - Euler's Theorem and Fleury's Algorithm In...Ch. 14.2 - Prob. 32ECh. 14.2 - 33. Parking Pattern The map shows the roads on...Ch. 14.2 - Prob. 34ECh. 14.2 - Floor Plans In Exercises 34-36, the floor plan of...Ch. 14.2 - Prob. 36ECh. 14.2 - Exercises 37-44 are based on the following...Ch. 14.2 - Prob. 38ECh. 14.2 - Exercises 37-44 are based on the following...Ch. 14.2 - Prob. 40ECh. 14.2 - Exercises 37-44 are based on the following...Ch. 14.2 - Floor PlansIn Exercises 41-43, refer to the floor...Ch. 14.2 - Prob. 43ECh. 14.2 - Prob. 44ECh. 14.2 - Prob. 45ECh. 14.2 - Prob. 46ECh. 14.2 - Prob. 47ECh. 14.2 - Prob. 48ECh. 14.2 - Prob. 49ECh. 14.2 - Route Planning For each street grid in Exercise...Ch. 14.2 - Route Planning For each street grid in Exercise...Ch. 14.2 - Route Planning For each street grid in Exercise...Ch. 14.3 - Prob. 1ECh. 14.3 - Prob. 2ECh. 14.3 - Euler and Hamilton Circuits In Exercises 3 and 4,...Ch. 14.3 - Euler and Hamilton Circuits In Exercises 3 and 4,...Ch. 14.3 - Hamilton Circuits In Exercises 5-10, determine...Ch. 14.3 - Hamilton Circuits In Exercises 5-10, determine...Ch. 14.3 - Hamilton Circuits In Exercises 5-10, determine...Ch. 14.3 - Hamilton Circuits In Exercises 5-10, determine...Ch. 14.3 - Hamilton Circuits In Exercises 5-10, determine...Ch. 14.3 - Hamilton Circuits In Exercises 5-10, determine...Ch. 14.3 - Prob. 11ECh. 14.3 - Prob. 12ECh. 14.3 - Prob. 13ECh. 14.3 - Decide whether each statement is true or false. If...Ch. 14.3 - Hamilton and Euler Circuits In Exercises 15-20,...Ch. 14.3 - Hamilton and Euler Circuits In Exercises 15-20,...Ch. 14.3 - Hamilton and Euler Circuits In Exercises 15-20,...Ch. 14.3 - Hamilton and Euler Circuits In Exercises 15-20,...Ch. 14.3 - Hamilton and Euler Circuits In Exercises 15-20,...Ch. 14.3 - Hamilton and Euler Circuits In Exercises 15-20,...Ch. 14.3 - FactorialsIn Exercises 21-24, use a calculator, if...Ch. 14.3 - Factorials In Exercises 21-24, use a calculator,...Ch. 14.3 - Factorials In Exercises 21-24, use a calculator,...Ch. 14.3 - Prob. 24ECh. 14.3 - Hamilton Circuit In Exercises 25-28, determine how...Ch. 14.3 - Prob. 26ECh. 14.3 - Prob. 27ECh. 14.3 - Prob. 28ECh. 14.3 - List all Hamilton circuits in the graph that start...Ch. 14.3 - Prob. 30ECh. 14.3 - Prob. 31ECh. 14.3 - Prob. 32ECh. 14.3 - Prob. 33ECh. 14.3 - Prob. 34ECh. 14.3 - Prob. 35ECh. 14.3 - Prob. 36ECh. 14.3 - Prob. 37ECh. 14.3 - Brute Force Algorithm In Exercises 38-41, use the...Ch. 14.3 - Brute Force Algorithm In Exercises 38-41, use the...Ch. 14.3 - Brute Force Algorithm In Exercises 38-41, use the...Ch. 14.3 - Brute Force Algorithm In Exercises 38-41, use the...Ch. 14.3 - Prob. 42ECh. 14.3 - Prob. 43ECh. 14.3 - Nearest Neighbor Algorithm In Exercises 42-44, use...Ch. 14.3 - 45. Nearest Neighbor Algorithm Refer to the...Ch. 14.3 - Prob. 46ECh. 14.3 - Prob. 47ECh. 14.3 - Prob. 48ECh. 14.3 - Prob. 49ECh. 14.3 - Hamilton Circuits In Exercises 47-50, find all...Ch. 14.3 - Traveling Salesman Problem The diagram represents...Ch. 14.3 - Prob. 52ECh. 14.3 - The Icosian Game The graph below shows the Icosian...Ch. 14.3 - Prob. 54ECh. 14.3 - Dirac's Theorem Paul A. M. Dirac proved the...Ch. 14.4 - Prob. 1ECh. 14.4 - Prob. 2ECh. 14.4 - Prob. 3ECh. 14.4 - Prob. 4ECh. 14.4 - Prob. 5ECh. 14.4 - Prob. 6ECh. 14.4 - Prob. 7ECh. 14.4 - Prob. 8ECh. 14.4 - Prob. 9ECh. 14.4 - Prob. 10ECh. 14.4 - Prob. 11ECh. 14.4 - Tree or Not a Tree? In Exercises 11-13, determine...Ch. 14.4 - Prob. 13ECh. 14.4 - Prob. 14ECh. 14.4 - Trees and Cut Edges In Exercises 14-17, determine...Ch. 14.4 - Trees and Cut Edges In Exercises 14-17, determine...Ch. 14.4 - Prob. 17ECh. 14.4 - Prob. 18ECh. 14.4 - Prob. 19ECh. 14.4 - Prob. 20ECh. 14.4 - Prob. 21ECh. 14.4 - Prob. 22ECh. 14.4 - Prob. 23ECh. 14.4 - Prob. 24ECh. 14.4 - Prob. 25ECh. 14.4 - Prob. 26ECh. 14.4 - Prob. 27ECh. 14.4 - Prob. 28ECh. 14.4 - Prob. 29ECh. 14.4 - Prob. 30ECh. 14.4 - Prob. 31ECh. 14.4 - Prob. 32ECh. 14.4 - Prob. 33ECh. 14.4 - Town Water Distribution A town council is planning...Ch. 14.4 - Prob. 35ECh. 14.4 - Prob. 36ECh. 14.4 - Prob. 37ECh. 14.4 - Prob. 38ECh. 14.4 - Prob. 39ECh. 14.4 - For Exercise 34
Trees, Edges, and Vertices Work...Ch. 14.4 - 41. Suppose we have a tree with 10 vertices.
(a)...Ch. 14.4 - Prob. 42ECh. 14.4 - Prob. 43ECh. 14.4 - 44. Design of a Garden Maria has 12 vegetable and...Ch. 14.4 - Prob. 45ECh. 14.4 - Prob. 46ECh. 14.4 - Prob. 47ECh. 14.4 - Prob. 48ECh. 14.4 - Prob. 49ECh. 14.4 - Prob. 50ECh. 14.4 - Prob. 51ECh. 14.4 - Prob. 52ECh. 14.4 - Prob. 53ECh. 14.4 - Prob. 54ECh. 14.4 - Prob. 55ECh. 14.4 - Vertex/Edge Relationship In this exercise, we...Ch. 14 - Basic Concepts In Exercises 1-5, refer to the...Ch. 14 - Basic Concepts In Exercises 1-5, refer to the...Ch. 14 - Prob. 3TCh. 14 - Prob. 4TCh. 14 - Prob. 5TCh. 14 - Prob. 6TCh. 14 - Prob. 7TCh. 14 - Prob. 8TCh. 14 - Planning for Dinner Julia is planning to invite...Ch. 14 - Prob. 10TCh. 14 - Prob. 11TCh. 14 - Prob. 12TCh. 14 - Prob. 13TCh. 14 - Scheduling Exams A teacher at a high school must...Ch. 14 - Prob. 15TCh. 14 - Prob. 16TCh. 14 - Prob. 17TCh. 14 - Prob. 18TCh. 14 - Prob. 19TCh. 14 - Prob. 20TCh. 14 - Prob. 21TCh. 14 - Prob. 22TCh. 14 - Prob. 23TCh. 14 - Prob. 24TCh. 14 - Prob. 25TCh. 14 - 26. Nonisomorphic Trees Draw three nonisomorphic...Ch. 14 - Prob. 27TCh. 14 - Prob. 28TCh. 14 - Prob. 29TCh. 14 - Prob. 30TCh. 14 - Prob. 31TCh. 14 - Prob. 32T
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