Mathematics for the Trades: A Guided Approach, Books a la Carte edition (11th Edition)
11th Edition
ISBN: 9780134765785
Author: Hal Saunders
Publisher: PEARSON
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Chapter 2, Problem 30APS
To determine
To complete: The equivalent fraction
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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…
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Chapter 2 Solutions
Mathematics for the Trades: A Guided Approach, Books a la Carte edition (11th Edition)
Ch. 2.1 - What fraction of the box does the shaded region...Ch. 2.1 - Reduce 48 to lowest terms.Ch. 2.1 - Write as a mixed number. 174Ch. 2.1 - Write as a mixed number. 85Ch. 2.1 - Write as a mixed number. 118Ch. 2.1 - Write as a mixed number. 4016Ch. 2.1 - Write as a mixed number. 32Ch. 2.1 - Prob. 6AECh. 2.1 - Prob. 7AECh. 2.1 - Prob. 8AE
Ch. 2.1 - Write as a mixed number. 8032Ch. 2.1 - Write as a mixed number. 52Ch. 2.1 - Write as an improper fraction. 213Ch. 2.1 - Write as an improper fraction. 712Ch. 2.1 - Write as an improper fraction. 838Ch. 2.1 - Prob. 4BECh. 2.1 - Prob. 5BECh. 2.1 - Prob. 6BECh. 2.1 - Prob. 7BECh. 2.1 - Prob. 8BECh. 2.1 - Write as an improper fraction. 456Ch. 2.1 - Prob. 10BECh. 2.1 - Complete. 78=?16Ch. 2.1 - Complete. 34=?16Ch. 2.1 - Complete. 18=?64Ch. 2.1 - Prob. 4CECh. 2.1 - Complete. 114=?16Ch. 2.1 - Complete. 278=?32Ch. 2.1 - Prob. 7CECh. 2.1 - Complete. 1116=?32Ch. 2.1 - Prob. 9CECh. 2.1 - Prob. 10CECh. 2.1 - Prob. 11CECh. 2.1 - Prob. 12CECh. 2.1 - Write in lowest terms. 416Ch. 2.1 - Write in lowest terms. 46Ch. 2.1 - Write in lowest terms. 616Ch. 2.1 - Prob. 4DECh. 2.1 - Write in lowest terms. 410Ch. 2.1 - Prob. 6DECh. 2.1 - Prob. 7DECh. 2.1 - Prob. 8DECh. 2.1 - Prob. 9DECh. 2.1 - Prob. 10DECh. 2.1 - Prob. 11DECh. 2.1 - Write in lowest terms. 1035Ch. 2.1 - Prob. 13DECh. 2.1 - Prob. 14DECh. 2.1 - Write in lowest terms. 3824Ch. 2.1 - Prob. 1EECh. 2.1 - Prob. 2EECh. 2.1 - Prob. 3EECh. 2.1 - Prob. 4EECh. 2.1 - E. Which is larger? 78or56Ch. 2.1 - Prob. 6EECh. 2.1 - Prob. 7EECh. 2.1 - Prob. 8EECh. 2.1 - Prob. 9EECh. 2.1 - E. Which is larger? 312or274Ch. 2.1 - Prob. 11EECh. 2.1 - Prob. 12EECh. 2.1 - F. Practical Applications Carpentry An apprentice...Ch. 2.1 - F. Practical Applications Electrical Trades An...Ch. 2.1 - F. Practical Applications The numbers 227, 196,...Ch. 2.1 - F. Practical Applications Sheet Metal Trades Which...Ch. 2.1 - F. Practical Applications Plumbing Is it possible...Ch. 2.1 - F. Practical Applications Sheet Metal Trades...Ch. 2.1 - F. Practical Applications Printing A printer has...Ch. 2.1 - F. Practical Applications Machine Trades A...Ch. 2.1 - F. Practical Applications Landscaping Before it...Ch. 2.1 - F. Practical Applications Roofing A ridge beam...Ch. 2.1 - F. Practical Applications Construction A 34-in....Ch. 2.1 - Prob. 12FECh. 2.1 - F. Practical Applications General Trades The...Ch. 2.2 - What is half of 18?Ch. 2.2 - Write 2416 as a mixed number in lowest terms.Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms. 612Ch. 2.2 - Multiply and write the answer in lowest terms. 893Ch. 2.2 - Prob. 6AECh. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Prob. 19AECh. 2.2 - Prob. 20AECh. 2.2 - Prob. 21AECh. 2.2 - Prob. 22AECh. 2.2 - Prob. 23AECh. 2.2 - Prob. 24AECh. 2.2 - Prob. 25AECh. 2.2 - Prob. 1BECh. 2.2 - Prob. 2BECh. 2.2 - Prob. 3BECh. 2.2 - Prob. 4BECh. 2.2 - Find. 12 of 112Ch. 2.2 - Prob. 6BECh. 2.2 - Prob. 7BECh. 2.2 - Prob. 8BECh. 2.2 - Find. 43 of 34Ch. 2.2 - Prob. 10BECh. 2.2 - Prob. 11BECh. 2.2 - B. Find. 35of4Ch. 2.2 - B. Find. 716of6Ch. 2.2 - Prob. 14BECh. 2.2 - Prob. 15BECh. 2.2 - Prob. 16BECh. 2.2 - Practical Applications Flooring and Carpeting Find...Ch. 2.2 - Prob. 2CECh. 2.2 - Practical Applications Roofing Shingles are laid...Ch. 2.2 - Prob. 4CECh. 2.2 - Prob. 5CECh. 2.2 - Prob. 6CECh. 2.2 - Prob. 7CECh. 2.2 - Practical Applications Machine Trades What is the...Ch. 2.2 - Practical Applications Manufacturing How many...Ch. 2.2 - Practical Applications Plumbing A plumber cut...Ch. 2.2 - Practical Applications Machine Trades How far will...Ch. 2.2 - Practical Applications Landscaping A landscaping...Ch. 2.2 - Practical Applications Drafting If 38 in. on a...Ch. 2.2 - Practical Applications Manufacturing What is the...Ch. 2.2 - Practical Applications Machine Trades How long...Ch. 2.2 - Prob. 16CECh. 2.2 - Prob. 17CECh. 2.2 - Prob. 18CECh. 2.2 - Practical Applications Photography A photograph...Ch. 2.2 - Prob. 20CECh. 2.2 - Prob. 21CECh. 2.2 - Practical Applications Water/Wastewater Treatment...Ch. 2.2 - Prob. 23CECh. 2.2 - Practical Applications Plumbing To find the degree...Ch. 2.2 - Prob. 25CECh. 2.2 - Prob. 26CECh. 2.2 - Prob. 27CECh. 2.2 - Prob. 28CECh. 2.2 - Prob. 29CECh. 2.2 - Prob. 30CECh. 2.2 - Prob. 31CECh. 2.2 - C. Practical Applications Carpentry A carpenter is...Ch. 2.2 - C. Practical Applications Retail Merchandising...Ch. 2.3 - Prob. 1LCCh. 2.3 - Prob. 2LCCh. 2.3 - Prob. 1AECh. 2.3 - Prob. 2AECh. 2.3 - Prob. 3AECh. 2.3 - Prob. 4AECh. 2.3 - Prob. 5AECh. 2.3 - Prob. 6AECh. 2.3 - Prob. 7AECh. 2.3 - Prob. 8AECh. 2.3 - Prob. 9AECh. 2.3 - Prob. 10AECh. 2.3 - Prob. 11AECh. 2.3 - Prob. 12AECh. 2.3 - Prob. 13AECh. 2.3 - Prob. 14AECh. 2.3 - Prob. 15AECh. 2.3 - Prob. 16AECh. 2.3 - Prob. 17AECh. 2.3 - Prob. 18AECh. 2.3 - Prob. 19AECh. 2.3 - Prob. 20AECh. 2.3 - Prob. 21AECh. 2.3 - Prob. 22AECh. 2.3 - Prob. 23AECh. 2.3 - Divide and write the answer in lowest terms....Ch. 2.3 - Drafting How many feet are represented by a 4-in....Ch. 2.3 - Drafting If 14in. on a drawing represents 1 ft 0...Ch. 2.3 - Flooring and Carpeting How many boards 458 in....Ch. 2.3 - Construction How many supporting columns 8812in....Ch. 2.3 - Construction How many pieces of 12in. plywood are...Ch. 2.3 - Masonry The front side of a standard brick...Ch. 2.3 - Prob. 7BECh. 2.3 - Prob. 8BECh. 2.3 - Prob. 9BECh. 2.3 - Prob. 10BECh. 2.3 - Prob. 11BECh. 2.3 - Prob. 12BECh. 2.3 - Prob. 13BECh. 2.3 - Prob. 14BECh. 2.3 - Prob. 15BECh. 2.3 - Prob. 16BECh. 2.3 - Prob. 17BECh. 2.3 - Prob. 18BECh. 2.3 - Prob. 19BECh. 2.3 - Prob. 20BECh. 2.3 - Landscaping An agricultural supply yard sells...Ch. 2.4 - Write 18 as a product of its prime factors.Ch. 2.4 - What is the smallest number that 8 and 12 both...Ch. 2.4 - Prob. 1AECh. 2.4 - Add or subtract as shown. 512+1112Ch. 2.4 - Prob. 3AECh. 2.4 - Prob. 4AECh. 2.4 - Add or subtract as shown. 3414Ch. 2.4 - Prob. 6AECh. 2.4 - Prob. 7AECh. 2.4 - Add or subtract as shown. 512212Ch. 2.4 - Add or subtract as shown. 516+316+716Ch. 2.4 - Add or subtract as shown. 18+38+78Ch. 2.4 - Add or subtract as shown. 17838Ch. 2.4 - Add or subtract as shown. 39161516Ch. 2.4 - Add or subtract as shown. 14+12Ch. 2.4 - Add or subtract as shown. 716+38Ch. 2.4 - Add or subtract as shown. 58+112Ch. 2.4 - Add or subtract as shown. 512+316Ch. 2.4 - Add or subtract as shown. 1238Ch. 2.4 - Add or subtract as shown. 516332Ch. 2.4 - Add or subtract as shown. 151612Ch. 2.4 - Add or subtract as shown. 716132Ch. 2.4 - Add or subtract as shown. 35+18Ch. 2.4 - Add or subtract as shown. 23+45Ch. 2.4 - Add or subtract as shown. 7825Ch. 2.4 - Add or subtract as shown. 4914Ch. 2.4 - Add or subtract as shown. 12+1418Ch. 2.4 - Prob. 26AECh. 2.4 - Prob. 27AECh. 2.4 - Prob. 28AECh. 2.4 - Prob. 29AECh. 2.4 - Prob. 30AECh. 2.4 - Add or subtract as shown. 213+115Ch. 2.4 - Add or subtract as shown. 178+14Ch. 2.4 - Prob. 33AECh. 2.4 - Prob. 34AECh. 2.4 - Add or subtract as shown. 3152112Ch. 2.4 - Prob. 36AECh. 2.4 - Add or subtract as shown. 8278Ch. 2.4 - Prob. 2BECh. 2.4 - Prob. 3BECh. 2.4 - Add or subtract as shown. 12+13+14+15Ch. 2.4 - Prob. 5BECh. 2.4 - Prob. 6BECh. 2.4 - Prob. 7BECh. 2.4 - Prob. 8BECh. 2.4 - B. Add or subtract as shown. 2316lessthan478Ch. 2.4 - Prob. 10BECh. 2.4 - B. Add or subtract as shown. 235 less than 612Ch. 2.4 - Prob. 12BECh. 2.4 - C. Practical Applications Construction The...Ch. 2.4 - C. Practical Applications Carpentry A countertop...Ch. 2.4 - Prob. 3CECh. 2.4 - Prob. 4CECh. 2.4 - Prob. 5CECh. 2.4 - Prob. 6CECh. 2.4 - Prob. 7CECh. 2.4 - Prob. 8CECh. 2.4 - Prob. 9CECh. 2.4 - Prob. 10CECh. 2.4 - Prob. 11CECh. 2.4 - Prob. 12CECh. 2.4 - Prob. 13CECh. 2.4 - Prob. 14CECh. 2.4 - Prob. 15CECh. 2.4 - Prob. 16CECh. 2.4 - Prob. 17CECh. 2.4 - Prob. 18CECh. 2.4 - Prob. 19CECh. 2.4 - Prob. 20CECh. 2.4 - Prob. 21CECh. 2.4 - Prob. 22CECh. 2.4 - Prob. 23CECh. 2.4 - Prob. 24CECh. 2.4 - Prob. 25CECh. 2 - Work with fractions. (a) Write as a mixed number...Ch. 2 - Multiply and divide fractions. (a) 78532 (b) 41223...Ch. 2 - Add and subtract fractions. (a) 716+316 (b)...Ch. 2 - Solve practical problems involving fractions....Ch. 2 - A. Write as an improper fraction. 118Ch. 2 - A. Write as an improper fraction. 415Ch. 2 - A. Write as an improper fraction. 123Ch. 2 - A. Write as an improper fraction. 2316Ch. 2 - A. Write as an improper fraction. 3332Ch. 2 - Prob. 6APSCh. 2 - A. Write as an improper fraction. 158Ch. 2 - Prob. 8APSCh. 2 - A. Write as a mixed number. 104Ch. 2 - Prob. 10APSCh. 2 - A. Write as a mixed number. 253Ch. 2 - Prob. 12APSCh. 2 - Prob. 13APSCh. 2 - Prob. 14APSCh. 2 - A. Write as a mixed number. 354Ch. 2 - A. Write as a mixed number. 73Ch. 2 - A. Write in lowest terms. 632Ch. 2 - A. Write in lowest terms. 832Ch. 2 - A. Write in lowest terms. 1232Ch. 2 - Prob. 20APSCh. 2 - A. Write in lowest terms. 520Ch. 2 - Prob. 22APSCh. 2 - A. Write in lowest terms. 11620Ch. 2 - Prob. 24APSCh. 2 - A. Complete these. 34=?12Ch. 2 - Prob. 26APSCh. 2 - A. Complete these. 234=?16Ch. 2 - Prob. 28APSCh. 2 - A. Complete these. 523=?12Ch. 2 - Prob. 30APSCh. 2 - A. Complete these. 114=?12Ch. 2 - A. Complete these. 235=?10Ch. 2 - A. Circle the larger number. 716or215Ch. 2 - Prob. 34APSCh. 2 - A. Circle the larger number. 1316or78Ch. 2 - Prob. 36APSCh. 2 - A. Circle the larger number. 1332or35Ch. 2 - A. Circle the larger number. 210or316Ch. 2 - A. Circle the larger number. 1716 or 74Ch. 2 - Prob. 40APSCh. 2 - B. Multiply 12316Ch. 2 - Prob. 2BPSCh. 2 - B. Multiply 71643Ch. 2 - Prob. 4BPSCh. 2 - B. Multiply 11256Ch. 2 - B. Multiply 311615Ch. 2 - B. Multiply 316512Ch. 2 - Prob. 8BPSCh. 2 - B. Multiply 3410Ch. 2 - Prob. 10BPSCh. 2 - B. Multiply or divide as shown. 18112Ch. 2 - Prob. 12BPSCh. 2 - B. Multiply or divide as shown. 223438Ch. 2 - Prob. 14BPSCh. 2 - Multiply or divide as shown. 1214Ch. 2 - Prob. 16BPSCh. 2 - Multiply or divide as shown. 418Ch. 2 - Multiply or divide as shown. 834Ch. 2 - Multiply or divide as shown. 234Ch. 2 - Prob. 20BPSCh. 2 - Multiply or divide as shown. 3125Ch. 2 - Prob. 22BPSCh. 2 - Multiply or divide as shown. 234118Ch. 2 - Prob. 24BPSCh. 2 - C. Add or subtract as shown. 38+78Ch. 2 - Prob. 2CPSCh. 2 - C. Add or subtract as shown. 332+18Ch. 2 - Prob. 4CPSCh. 2 - C. Add or subtract as shown. 35+56Ch. 2 - Prob. 6CPSCh. 2 - Prob. 7CPSCh. 2 - Prob. 8CPSCh. 2 - Prob. 9CPSCh. 2 - Prob. 10CPSCh. 2 - C. Add or subtract as shown. 78310Ch. 2 - Prob. 12CPSCh. 2 - C. Add or subtract as shown. 218+114Ch. 2 - Prob. 14CPSCh. 2 - C. Add or subtract as shown. 6112Ch. 2 - Prob. 16CPSCh. 2 - C. Add or subtract as shown. 323178Ch. 2 - Prob. 18CPSCh. 2 - C. Add or subtract as shown. 12+13+15Ch. 2 - Prob. 20CPSCh. 2 - C. Add or subtract as shown. 312213Ch. 2 - C. Add or subtract as shown. 2351415Ch. 2 - C. Add or subtract as shown. 2135Ch. 2 - Prob. 24CPSCh. 2 - D. Practical Applications Welding In a welding...Ch. 2 - D. Practical Applications Machine Trades How many...Ch. 2 - D. Practical Applications Welding A piece of metal...Ch. 2 - D. Practical Applications Automotive Trades A...Ch. 2 - D. Practical Applications Machine Trades A shaft...Ch. 2 - D Practical Applications Machine Trades A bar...Ch. 2 - D. Practical Applications Manufacturing A cubic...Ch. 2 - D. Practical Applications Manufacturing Find the...Ch. 2 - D. Practical Applications Machine Trades What...Ch. 2 - D. Practical Applications Machine Trades The Ace...Ch. 2 - D. Practical Applications Carpentry What is the...Ch. 2 - D. Practical Applications Construction For the...Ch. 2 - D. Practical Applications Carpentry Find the...Ch. 2 - D. Practical Applications Masonry Find the height...Ch. 2 - D. Practical Applications Masonry If the wall in...Ch. 2 - D. Practical Applications Electrical Trades An...Ch. 2 - D. Practical Applications Printing An invitation...Ch. 2 - D. Practical Applications Printing As a rule of...Ch. 2 - D. Practical Applications Welding A 46-in. bar...Ch. 2 - D. Practical Applications Construction If an...Ch. 2 - D. Practical Applications Machine Trades If a...Ch. 2 - Prob. 22DPSCh. 2 - D. Practical Applications Landscaping A...Ch. 2 - D. Practical Applications Machine Trades A machine...Ch. 2 - D. Practical Applications Automotive Trades On a...Ch. 2 - D. Practical Applications Automotive Trades A...Ch. 2 - D. Practical Applications Allied Health One bottle...Ch. 2 - D. Practical Applications Construction The...Ch. 2 - Prob. 29DPSCh. 2 - Prob. 30DPSCh. 2 - Flooring and Carpeting In the United States carpet...Ch. 2 - D. Practical Applications Retail Merchandising In...Ch. 2 - D. Practical Applications Retail Merchandising The...Ch. 2 - D. Practical Applications Carpentry A carpenter...
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