Numerical Analysis
10th Edition
ISBN: 9781305253667
Author: Richard L. Burden, J. Douglas Faires, Annette M. Burden
Publisher: Cengage Learning
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Textbook Question
Chapter 3.1, Problem 2DQ
If we decide to increase the degree of the interpolating polynomial by adding nodes, is there an easy way to use a previous interpolating polynomial to obtain a higher-degree interpolating polynomial, or do we need to start over?
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Chapter 3 Solutions
Numerical Analysis
Ch. 3.1 - For the given functions f(x), let x0 = 0, x1 =...Ch. 3.1 - Use Theorem 3.3 to find an error bound for the...Ch. 3.1 - Prob. 4ESCh. 3.1 - The data for Exercise 6 were generated using the...Ch. 3.1 - Prob. 9ESCh. 3.1 - Prob. 10ESCh. 3.1 - Prob. 11ESCh. 3.1 - Prob. 12ESCh. 3.1 - Prob. 15ESCh. 3.1 - Prob. 17ES
Ch. 3.1 - It is suspected that the high amounts of tannin in...Ch. 3.1 - Prob. 21ESCh. 3.1 - Prove Taylors Theorem 1.14 by following the...Ch. 3.1 - Prob. 1DQCh. 3.1 - If we decide to increase the degree of the...Ch. 3.2 - Let P3(x) be the interpolating polynomial for the...Ch. 3.2 - Nevilles method is used to approximate f(0.4),...Ch. 3.2 - Nevilles method is used to approximate f(0.5),...Ch. 3.2 - Suppose xj = j, for j = 0, 1, 2, 3, and it is...Ch. 3.2 - Nevilles Algorithm is used to approximate f(0)...Ch. 3.2 - Prob. 11ESCh. 3.2 - Prob. 13ESCh. 3.2 - Can Nevilles method be used to obtain the...Ch. 3.3 - Use Eq. (3.10) or Algorithm 3.2 to construct...Ch. 3.3 - Use Eq. (3.10) or Algorithm 3.2 to construct...Ch. 3.3 - Use the Newton forward-difference formula to...Ch. 3.3 - Use the Newton forward-difference formula to...Ch. 3.3 - Use the Newton backward-difference formula to...Ch. 3.3 - Use the Newton backward-difference formula to...Ch. 3.3 - a. Use Algorithm 3.2 to construct the...Ch. 3.3 - a. Use Algorithm 3.2 to construct the...Ch. 3.3 - a. Approximate f(0.05) using the following data...Ch. 3.3 - The following data are given for a polynomial P(x)...Ch. 3.3 - The following data are given for a polynomial P(x)...Ch. 3.3 - The Newton forward-difference formula is used to...Ch. 3.3 - Prob. 14ESCh. 3.3 - Prob. 16ESCh. 3.3 - Prob. 17ESCh. 3.3 - Show that the polynomial interpolating the...Ch. 3.3 - Prob. 20ESCh. 3.3 - Prob. 21ESCh. 3.3 - Prob. 22ESCh. 3.3 - Prob. 23ESCh. 3.3 - Compare and contrast the various...Ch. 3.3 - Is it easier to add a new data pair using...Ch. 3.3 - Prob. 3DQCh. 3.4 - Use Theorem 3.9 or Algorithm 3.3 to construct an...Ch. 3.4 - Use Theorem 3.9 or Algorithm 3.3 to construct an...Ch. 3.4 - The data in Exercise 1 were generated using the...Ch. 3.4 - The data in Exercise 2 were generated using the...Ch. 3.4 - Let f (x) = 3xex e2x. a. Approximate f (1.03) by...Ch. 3.4 - The following table lists data for the function...Ch. 3.4 - a. Show that H2n + 1 (x) is the unique polynomial...Ch. 3.4 - Prob. 1DQCh. 3.4 - Prob. 2DQCh. 3.4 - Prob. 3DQCh. 3.5 - Determine the natural cubic spline S that...Ch. 3.5 - Determine the clamped cubic spline s that...Ch. 3.5 - Construct the natural cubic spline for the...Ch. 3.5 - Construct the natural cubic spline for the...Ch. 3.5 - The data in Exercise 3 were generated using the...Ch. 3.5 - Prob. 6ESCh. 3.5 - Prob. 8ESCh. 3.5 - Prob. 11ESCh. 3.5 - Prob. 12ESCh. 3.5 - Prob. 13ESCh. 3.5 - Prob. 14ESCh. 3.5 - Given the partition x0 = 0, x1 = 0.05, and x2 =...Ch. 3.5 - Prob. 16ESCh. 3.5 - Prob. 21ESCh. 3.5 - Prob. 22ESCh. 3.5 - Prob. 23ESCh. 3.5 - It is suspected that the high amounts of tannin in...Ch. 3.5 - Prob. 29ESCh. 3.5 - Prob. 30ESCh. 3.5 - Prob. 31ESCh. 3.5 - Prob. 32ESCh. 3.5 - Let f C2[a, b] and let the nodes a = x0 x1 xn...Ch. 3.5 - Prob. 34ESCh. 3.5 - Prob. 35ESCh. 3.6 - Let (x0, y0) = (0,0) and (x1, y1) = (5, 2) be the...Ch. 3.6 - Prob. 2ESCh. 3.6 - Prob. 5ESCh. 3.6 - Prob. 1DQ
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.Similar questions
- Question 2. An American option on a stock has payoff given by F = f(St) when it is exercised at time t. We know that the function f is convex. A person claims that because of convexity, it is optimal to exercise at expiration T. Do you agree with them?arrow_forwardQuestion 4. We consider a CRR model with So == 5 and up and down factors u = 1.03 and d = 0.96. We consider the interest rate r = 4% (over one period). Is this a suitable CRR model? (Explain your answer.)arrow_forwardQuestion 3. We want to price a put option with strike price K and expiration T. Two financial advisors estimate the parameters with two different statistical methods: they obtain the same return rate μ, the same volatility σ, but the first advisor has interest r₁ and the second advisor has interest rate r2 (r1>r2). They both use a CRR model with the same number of periods to price the option. Which advisor will get the larger price? (Explain your answer.)arrow_forward
- Question 5. We consider a put option with strike price K and expiration T. This option is priced using a 1-period CRR model. We consider r > 0, and σ > 0 very large. What is the approximate price of the option? In other words, what is the limit of the price of the option as σ∞. (Briefly justify your answer.)arrow_forwardQuestion 6. You collect daily data for the stock of a company Z over the past 4 months (i.e. 80 days) and calculate the log-returns (yk)/(-1. You want to build a CRR model for the evolution of the stock. The expected value and standard deviation of the log-returns are y = 0.06 and Sy 0.1. The money market interest rate is r = 0.04. Determine the risk-neutral probability of the model.arrow_forwardSeveral markets (Japan, Switzerland) introduced negative interest rates on their money market. In this problem, we will consider an annual interest rate r < 0. We consider a stock modeled by an N-period CRR model where each period is 1 year (At = 1) and the up and down factors are u and d. (a) We consider an American put option with strike price K and expiration T. Prove that if <0, the optimal strategy is to wait until expiration T to exercise.arrow_forward
- We consider an N-period CRR model where each period is 1 year (At = 1), the up factor is u = 0.1, the down factor is d = e−0.3 and r = 0. We remind you that in the CRR model, the stock price at time tn is modeled (under P) by Sta = So exp (μtn + σ√AtZn), where (Zn) is a simple symmetric random walk. (a) Find the parameters μ and σ for the CRR model described above. (b) Find P Ste So 55/50 € > 1). StN (c) Find lim P 804-N (d) Determine q. (You can use e- 1 x.) Ste (e) Find Q So (f) Find lim Q 004-N StN Soarrow_forwardIn 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 22 28 12 16 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 strike price K = 10. It works like a standard put, but you can exercise it…arrow_forwardIn this problem, we consider a 2-period stock market model with evolution given in Fig. 1 below. Each period corresponds to one year (At = 1). The yearly interest rate is r = 1/3 = 33%. This model is a CRR model. 25 15 9 10 6 4 time Figure 1: Stock evolution for Problem 1. (a) Find the values of up and down factors u and d, and the risk-neutral probability q. (b) We consider a European put with strike price K the price of this option at time 0. == 16 and expiration T = 2 years. Find (c) Provide the number of shares of stock that the replicating portfolio contains at each pos- sible position. (d) You find this option available on the market for $2. What do you do? (Short answer.) (e) We consider an American put with strike price K = 16 and expiration T = 2 years. Find the price of this option at time 0 and describe the optimal exercising strategy. (f) We consider an American call with strike price K ○ = 16 and expiration T = 2 years. Find the price of this option at time 0 and describe…arrow_forward
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Interpolation | Lecture 43 | Numerical Methods for Engineers; Author: Jffrey Chasnov;https://www.youtube.com/watch?v=RpxoN9-i7Jc;License: Standard YouTube License, CC-BY