DISCRETE MATH
8th Edition
ISBN: 9781266712326
Author: ROSEN
Publisher: MCG CUSTOM
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Textbook Question
Chapter 3.1, Problem 11E
- Describe an algorithm that interchanges the values of the variablesxandy, using only assignments. What is the minimum number of assignment statements needed to do this?
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Students have asked these similar questions
In this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0
given (under the measure P) by
d.St 0.03 St dt + 0.2 St dwt,
with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to
price an option on this stock (which we name cubic put). This option is European-type, with
maturity 3 months (i.e. T = 0.25 years), and payoff given by
F = (8-5)+
(a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure
Q. (You don't need to prove it, simply give the answer.)
(b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2.
(c) Let X =
S. Find the Stochastic Differential Equation satisfied by the process (Xt)
under the measure Q.
(d) Find an explicit expression for X₁ = S3 under measure Q.
(e) Using the results above, find the price of the cubic put option mentioned above.
(f) Is the price in (e) the same as in question (b)? (Explain why.)
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
Chapter 3 Solutions
DISCRETE MATH
Ch. 3.1 - List all the steps used by Algorithm 1 to find the...Ch. 3.1 - Determine which characteristics of an algorithm...Ch. 3.1 - Devise an algorithm that finds the sum of all the...Ch. 3.1 - Describe an algorithm that takes as input a list...Ch. 3.1 - Describe an algorithm that takes as input a list...Ch. 3.1 - Describe an algorithm that takes as input a list...Ch. 3.1 - Describe an algorithm that takes as input a list...Ch. 3.1 - Describe an algorithm that takes as input a list...Ch. 3.1 - Apalindromeis a string that reads the same forward...Ch. 3.1 - Devise an algorithm to computexn, wherexis a real...
Ch. 3.1 - Describe an algorithm that interchanges the values...Ch. 3.1 - cribe an algorithm that uses only assignment...Ch. 3.1 - List all the steps used to search for 9 in the...Ch. 3.1 - List all the steps used to search for 7 in the...Ch. 3.1 - cribe an algorithm that inserts an integerxin the...Ch. 3.1 - Describe an algorithm for finding the smallest...Ch. 3.1 - Describe an algorithm that locates the first...Ch. 3.1 - Describe an algorithm that locates the last...Ch. 3.1 - Describe an algorithm that produces the maximum,...Ch. 3.1 - Describe an algorithm for finding both the largest...Ch. 3.1 - Describe an algorithm that puts the first three...Ch. 3.1 - Prob. 22ECh. 3.1 - Prob. 23ECh. 3.1 - Describe an algorithm that determines whether a...Ch. 3.1 - Describe an algorithm that will count the number...Ch. 3.1 - nge Algorithm 3 so that the binary search...Ch. 3.1 - Theternary search algorithmlocates an element in a...Ch. 3.1 - Specify the steps of an algorithm that locates an...Ch. 3.1 - Devise an algorithm that finds a mode in a list of...Ch. 3.1 - Devise an algorithm that finds all modes. (Recall...Ch. 3.1 - Two strings areanagramsif each can be formed from...Ch. 3.1 - ennreal numbersx1,x2,...,xn , find the two that...Ch. 3.1 - Devise an algorithm that finds the first term of a...Ch. 3.1 - Prob. 34ECh. 3.1 - Prob. 35ECh. 3.1 - Use the bubble sort to sort 6, 2, 3, 1, 5, 4,...Ch. 3.1 - Use the bubble sort to sort 3, 1, 5, 7, 4, showing...Ch. 3.1 - Use the bubble sort to sortd,f,k,m,a,b, showing...Ch. 3.1 - Adapt the bubble sort algorithm so that it stops...Ch. 3.1 - Use the insertion sort to sort the list in...Ch. 3.1 - Use the insertion sort to sort the list in...Ch. 3.1 - Use the insertion sort to sort the list in...Ch. 3.1 - Sort these lists using the selection sort....Ch. 3.1 - Write the selection sort algorithm in pseudocode.Ch. 3.1 - Describe an algorithm based on the linear search...Ch. 3.1 - Describe an algorithm based on the binary search...Ch. 3.1 - How many comparisons does the insertion sort use...Ch. 3.1 - How many comparisons does the insertion sort use...Ch. 3.1 - Show all the steps used by the binary insertion...Ch. 3.1 - Compare the number of comparisons used by the...Ch. 3.1 - Prob. 51ECh. 3.1 - Devise a variation of the insertion sort that uses...Ch. 3.1 - Prob. 53ECh. 3.1 - List all the steps the naive string matcher uses...Ch. 3.1 - List all the steps the naive string matcher uses...Ch. 3.1 - Use the cashier’s algorithm to make change using...Ch. 3.1 - Use the cashier’s algorithm to make change using...Ch. 3.1 - Use the cashier’s algorithm to make change using...Ch. 3.1 - Prob. 59ECh. 3.1 - Show that if there were a coin worth 12 cents, the...Ch. 3.1 - Prob. 61ECh. 3.1 - Prob. 62ECh. 3.1 - Devise a greedy algorithm that determines the...Ch. 3.1 - Suppose we have three menm1,m2, andm3and three...Ch. 3.1 - Write the deferred acceptance algorithm in...Ch. 3.1 - Prob. 66ECh. 3.1 - Prob. 67ECh. 3.1 - Prob. 68ECh. 3.1 - Prove that the Boyer-Moore majority vote algorithm...Ch. 3.1 - Show that the problem of determining whether a...Ch. 3.1 - Prob. 71ECh. 3.1 - Show that the problem of deciding whether a...Ch. 3.2 - Exercises 1—14, to establish a big-Orelationship,...Ch. 3.2 - Exercises 1—14, to establish a big-Orelationship,...Ch. 3.2 - Exercises 1—14, to establish a big-Orelationship,...Ch. 3.2 - Exercises 1—14, to establish a big-Orelationship,...Ch. 3.2 - Exercises 1—14, to establish a big-Orelationship,...Ch. 3.2 - Exercises 1—14, to establish a big-Orelationship,...Ch. 3.2 - Exercises 1—14, to establish a big-Orelationship,...Ch. 3.2 - Exercises 1—14, to establish a big-Orelationship,...Ch. 3.2 - Exercises 1—14, to establish a big-Orelationship,...Ch. 3.2 - Exercises 1—14, to establish a big-Orelationship,...Ch. 3.2 - Prob. 11ECh. 3.2 - Exercises 1—14, to establish a big-Orelationship,...Ch. 3.2 - Exercises 1—14, to establish a big-Orelationship,...Ch. 3.2 - ermine whetherx3isO(g(x))for each of these...Ch. 3.2 - Explain what it means for a function to be 0(1)Ch. 3.2 - w that iff(x)isO(x)thenf(x)isO(x2).Ch. 3.2 - Suppose thatf(x),g(x), andh(x)are functions such...Ch. 3.2 - kbe a positive integer. Show...Ch. 3.2 - Prob. 19ECh. 3.2 - To simplify:(3a5)3 27a15 Given information:(3a5)3....Ch. 3.2 - ange the functionsn, 1000 logn,nlogn,2n!,2n,3n,...Ch. 3.2 - Arrange the...Ch. 3.2 - Suppose that you have two different algorithms for...Ch. 3.2 - Suppose that you have two different algorithms for...Ch. 3.2 - Give as good a big-Oestimate as possible for each...Ch. 3.2 - e a big-Oestimate for each of these functions. For...Ch. 3.2 - Give a big-Oestimate for each of these functions....Ch. 3.2 - each function in Exercise 1, determine whether...Ch. 3.2 - Prob. 29ECh. 3.2 - Show that each of these pairs of functions are of...Ch. 3.2 - Prob. 31ECh. 3.2 - w thatf(x)andg(x)are functions from the set of...Ch. 3.2 - Prob. 33ECh. 3.2 - Show that3x2+x+1is(3x2)by directly finding the...Ch. 3.2 - Prob. 35ECh. 3.2 - lain what it means for a function to be(1).Ch. 3.2 - Prob. 37ECh. 3.2 - Give a big-Oestimate of the product of the...Ch. 3.2 - Prob. 39ECh. 3.2 - Prob. 40ECh. 3.2 - Prob. 41ECh. 3.2 - pose thatf(x)isO(g(x)). Does it follow...Ch. 3.2 - Prob. 43ECh. 3.2 - pose thatf(x),g(x), andh(x)are functions such...Ch. 3.2 - Prob. 45ECh. 3.2 - Prob. 46ECh. 3.2 - Prob. 47ECh. 3.2 - ress the relationshipf(x)is(g(x))using a picture....Ch. 3.2 - Prob. 49ECh. 3.2 - w that iff(x)=anxn+an1xn1++a1x+a0,...Ch. 3.2 - Prob. 51ECh. 3.2 - Prob. 52ECh. 3.2 - Prob. 53ECh. 3.2 - w thatx5y3+x4y4+x3y5is(x3y3).Ch. 3.2 - w thatxyisO(xy).Ch. 3.2 - w thatxyis(xy).Ch. 3.2 - Prob. 57ECh. 3.2 - Prob. 58ECh. 3.2 - Prob. 59ECh. 3.2 - Prob. 60ECh. 3.2 - Prob. 61ECh. 3.2 - (Requires calculus) Prove or disprove that (2n)!...Ch. 3.2 - Prob. 63ECh. 3.2 - Prob. 64ECh. 3.2 - Prob. 65ECh. 3.2 - Prob. 66ECh. 3.2 - Prob. 67ECh. 3.2 - Prob. 68ECh. 3.2 - Prob. 69ECh. 3.2 - Prob. 70ECh. 3.2 - Prob. 71ECh. 3.2 - Prob. 72ECh. 3.2 - Show thatnlognisO(logn!).Ch. 3.2 - Prob. 74ECh. 3.2 - Prob. 75ECh. 3.2 - Prob. 76ECh. 3.2 - (Requires calculus) For each of these pairs of...Ch. 3.3 - Give a big-Oestimate for the number of operations...Ch. 3.3 - Give a big-Oestimate for the number additions used...Ch. 3.3 - Give a big-Oestimate for the number of operations,...Ch. 3.3 - Give a big-Oestimate for the number of operations,...Ch. 3.3 - Prob. 5ECh. 3.3 - Use pseudocode to describe the algorithm that puts...Ch. 3.3 - Suppose that an element is known to be among the...Ch. 3.3 - Prob. 8ECh. 3.3 - Give a big-Oestimate for the number of comparisons...Ch. 3.3 - Show that this algorithm determines the number of...Ch. 3.3 - pose we havensubsetsS1,S2, ...,Snof the set {1, 2,...Ch. 3.3 - Consider the following algorithm, which takes as...Ch. 3.3 - The conventional algorithm for evaluating a...Ch. 3.3 - re is a more efficient algorithm (in terms of the...Ch. 3.3 - t is the largestnfor which one can solve within...Ch. 3.3 - What is the largestnfor which one can solve within...Ch. 3.3 - What is the largestnfor which one can solve within...Ch. 3.3 - How much time does an algorithm take to solve a...Ch. 3.3 - Prob. 19ECh. 3.3 - What is the effect in the time required to solve a...Ch. 3.3 - Prob. 21ECh. 3.3 - Determine the least number of comparisons, or...Ch. 3.3 - Analyze the average-case performance of the linear...Ch. 3.3 - An algorithm is calledoptimalfor the solution of a...Ch. 3.3 - Describe the worst-case time complexity, measured...Ch. 3.3 - Prob. 26ECh. 3.3 - Prob. 27ECh. 3.3 - Prob. 28ECh. 3.3 - Analyze the worst-case time complexity of the...Ch. 3.3 - Analyze the worst-case time complexity of the...Ch. 3.3 - Analyze the worst-case time complexity of the...Ch. 3.3 - Prob. 32ECh. 3.3 - Prob. 33ECh. 3.3 - Prob. 34ECh. 3.3 - Determine a big-O estimate for the worst-case...Ch. 3.3 - Determine the number of character comparisons used...Ch. 3.3 - Determine a big-Oestimate of the number of...Ch. 3.3 - Prob. 38ECh. 3.3 - Prob. 39ECh. 3.3 - Show that the greedy algorithm for making change...Ch. 3.3 - rcises 41 and 42 deal with the problem of...Ch. 3.3 - rcises 41 and 42 deal with the problem of...Ch. 3.3 - Prob. 43ECh. 3.3 - Prob. 44ECh. 3.3 - Prob. 45ECh. 3.3 - Prob. 46ECh. 3.3 - Prob. 47ECh. 3.3 - Prob. 48ECh. 3.3 - Prob. 49ECh. 3 - Define the termalgorithm. What are the different...Ch. 3 - Describe, using English, an algorithm for finding...Ch. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Define what the worst-case time complexity,...Ch. 3 - Prob. 7RQCh. 3 - Describe the bubble sort algorithm. Use the bubble...Ch. 3 - Describe the insertion sort algorithm. Use the...Ch. 3 - Explain the concept of a greedy algorithm. Provide...Ch. 3 - Prob. 11RQCh. 3 - Describe an algorithm for locating the last...Ch. 3 - Prob. 2SECh. 3 - Give an algorithm to determine whether a bit...Ch. 3 - Suppose that a list contains integers that are in...Ch. 3 - Prob. 5SECh. 3 - Prob. 6SECh. 3 - Prob. 7SECh. 3 - Prob. 8SECh. 3 - Prob. 9SECh. 3 - Prob. 10SECh. 3 - Show the steps used by the shaker sort to sort the...Ch. 3 - Express the shaker sort in pseudocode.Ch. 3 - Prob. 13SECh. 3 - Prob. 14SECh. 3 - Prob. 15SECh. 3 - w that8x3+12x+100logxisO(x3).Ch. 3 - Prob. 17SECh. 3 - Prob. 18SECh. 3 - Prob. 19SECh. 3 - w thatnnis notO(n!).Ch. 3 - Prob. 21SECh. 3 - Prob. 22SECh. 3 - Prob. 23SECh. 3 - Prob. 24SECh. 3 - Arrange the...Ch. 3 - Prob. 26SECh. 3 - Prob. 27SECh. 3 - Show that if the denominations of coins arec0,c1,...Ch. 3 - Prob. 29SECh. 3 - Prob. 30SECh. 3 - Prob. 31SECh. 3 - Show that the deferred acceptance algorithm given...Ch. 3 - Prob. 33SECh. 3 - Show that when woman do the proposing in the...Ch. 3 - Prob. 35SECh. 3 - Prob. 36SECh. 3 - Prob. 37SECh. 3 - Prob. 38SECh. 3 - Prob. 39SECh. 3 - Prob. 40SECh. 3 - Prob. 41SECh. 3 - Exercises 4246 we will study the problem of load...Ch. 3 - Prob. 43SECh. 3 - Prob. 44SECh. 3 - Prob. 45SECh. 3 - Prove that the algorithm from Exercise 44 is a...Ch. 3 - Prob. 1CPCh. 3 - Prob. 2CPCh. 3 - Prob. 3CPCh. 3 - Prob. 4CPCh. 3 - Prob. 5CPCh. 3 - Prob. 6CPCh. 3 - Prob. 7CPCh. 3 - Given an integern, use the cashier’s algorithm to...Ch. 3 - Prob. 9CPCh. 3 - Prob. 10CPCh. 3 - Prob. 11CPCh. 3 - Prob. 1CAECh. 3 - Prob. 2CAECh. 3 - Using a generator of random orderings of the...Ch. 3 - Prob. 4CAECh. 3 - Write a program that animates the progress of all...Ch. 3 - Examine the history of the wordalgorithmand...Ch. 3 - Prob. 2WPCh. 3 - Explain how sorting algorithms can be classified...Ch. 3 - Prob. 4WPCh. 3 - Prob. 5WPCh. 3 - Prob. 6WPCh. 3 - Describe the historic trends in how quickly...Ch. 3 - Develop a detailed list of algorithmic paradigms...Ch. 3 - Explain what the Turing Award is and describe the...Ch. 3 - Prob. 10WPCh. 3 - Prob. 11WPCh. 3 - Describe six different NP-complete problems.Ch. 3 - Prob. 13WP
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