Mathematics All Around-Workbook
6th Edition
ISBN: 9780134462356
Author: Pirnot
Publisher: PEARSON
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Textbook Question
Chapter 3.5, Problem 27E
In Exercises 25 – 28, write two syllogisms that can be illustrated by the given diagram. (a) Write a valid syllogism that sounds absurd. (b) Write an invalid syllogism that sound reasonable. Try to be creative and humorous.
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Suppose that the price S(t) in year t of stocks of Bancroft & Sons is modelled by a stochastic process which has a risk-neutral distribution at time t =
3 given
by
£120
with probability 0.3,
S(3):
=
£140
with probability 0.5,
£160
with probability 0.2.
Assume that interest is compounded continuously at nominal rate 2%.
(a) Assuming no-arbitrage, determine the current price S(0) of Bancroft & Sons stock. Enter your answer correct to the nearest pound.
Answer:
(b)
Determine the no-arbitrage price of a European put option on Bancroft & Sons stock with strike 150 and expiry 3 years. Enter your answer
correct to the nearest pound.
Answer:
A 2-year bond with face value £300,000 is redeemable at half-par and has semi-annual coupons paid at annual rate 4%. Suppose that interest is compounded
quarterly at nominal rate 3%.
(a)
Answer:
What is the amount of the first payment?
(b) What is the amount of the last payment?
Answer:
(c) Determine the no-arbitrage price of the bond. Enter your answer correct to the nearest pound.
Answer:
(d) Determine the duration of the cash flow generated by the bond. Enter your answer correct to 3 significant digits.
Answer:
Tick all statements which are correct, but do not tick those that are incorrect.
a.
A forward contract gives you the right but not the obligation to buy a certain product at a specified time in the future for a fixed price.
b. An American put option should always be exercised before its expiry time.
C.
The price of a put option and of a call option with the same expiration time and strike price can never be the same.
d. If there is a sporting event with 3 different outcomes with corresponding odds equal to o₁ = 2,02 = 2, and 03 =
opportunity for a suitable betting strategy.
= 3, then there is an arbitrage
e.
If there is arbitrage, then a risk-neutral distribution exists.
Chapter 3 Solutions
Mathematics All Around-Workbook
Ch. 3.1 - Sharpening Your Skills In Exercise 110, determine...Ch. 3.1 - Sharpening Your Skills In Exercise 110, determine...Ch. 3.1 - Sharpening Your Skills In Exercise 110, determine...Ch. 3.1 - Sharpening Your Skills In Exercise 110, determine...Ch. 3.1 - Sharpening Your Skills In Exercise 110, determine...Ch. 3.1 - Sharpening Your Skills In Exercise 110, determine...Ch. 3.1 - Sharpening Your Skills In Exercise 110, determine...Ch. 3.1 - Sharpening Your Skills In Exercise 110, determine...Ch. 3.1 - Sharpening Your Skills In Exercise 110, determine...Ch. 3.1 - Sharpening Your Skills In Exercise 110, determine...
Ch. 3.1 - In Exercise 1120, identify each statement as...Ch. 3.1 - In Exercise 1120, identify each statement as...Ch. 3.1 - In Exercise 1120, identify each statement as...Ch. 3.1 - In Exercise 1120, identify each statement as...Ch. 3.1 - In Exercise 1120, identify each statement as...Ch. 3.1 - In Exercise 1120, identify each statement as...Ch. 3.1 - In Exercise 1120, identify each statement as...Ch. 3.1 - In Exercise 1120, identify each statement as...Ch. 3.1 - In Exercise 1120, identify each statement as...Ch. 3.1 - In Exercise 1120, identify each statement as...Ch. 3.1 - Consider the following statements: g: Global...Ch. 3.1 - Consider the following statements: g: Global...Ch. 3.1 - Consider the following statements: g: Global...Ch. 3.1 - Consider the following statements: g: Global...Ch. 3.1 - Consider the following statements: t: The radial...Ch. 3.1 - Prob. 26ECh. 3.1 - Consider the following statements: t: The radial...Ch. 3.1 - Consider the following statements: t: The radial...Ch. 3.1 - In Exercises 2934, negate each quantified...Ch. 3.1 - In Exercises 2934, negate each quantified...Ch. 3.1 - In Exercises 2934, negate each quantified...Ch. 3.1 - In Exercises 2934, negate each quantified...Ch. 3.1 - In Exercises 2934, negate each quantified...Ch. 3.1 - In Exercises 2934, negate each quantified...Ch. 3.1 - Applying What Youve Learned Use the following...Ch. 3.1 - Applying What Youve Learned Use the following...Ch. 3.1 - Applying What Youve Learned Use the following...Ch. 3.1 - Applying What Youve Learned Use the following...Ch. 3.1 - Applying What Youve Learned Use the following...Ch. 3.1 - Applying What Youve Learned Use the following...Ch. 3.1 - Consider the happy and sad faces below. Determine...Ch. 3.1 - Consider the happy and sad faces below. Determine...Ch. 3.1 - Consider the happy and sad faces below. Determine...Ch. 3.1 - Consider the happy and sad faces below. Determine...Ch. 3.1 - In Exercises 4548, examine each statement to...Ch. 3.1 - In Exercises 4548, examine each statement to...Ch. 3.1 - In Exercises 4548, examine each statement to...Ch. 3.1 - In Exercises 4548, examine each statement to...Ch. 3.1 - Because the English language is so complex, it is...Ch. 3.1 - Because the English language is so complex, it is...Ch. 3.1 - Because the English language is so complex, it is...Ch. 3.1 - Prob. 52ECh. 3.1 - Prob. 53ECh. 3.1 - Prob. 54ECh. 3.1 - Prob. 55ECh. 3.1 - In 1937, Claude Shannon showed that computer...Ch. 3.1 - Prob. 57ECh. 3.1 - In 1937, Claude Shannon showed that computer...Ch. 3.1 - In Exercises 5962, determine if the following...Ch. 3.1 - In Exercises 5962, determine if the following...Ch. 3.1 - Prob. 61ECh. 3.1 - Prob. 62ECh. 3.1 - Prob. 63ECh. 3.1 - Prob. 64ECh. 3.1 - Prob. 65ECh. 3.1 - Prob. 66ECh. 3.1 - 6772. In symbolic logic, the form of statements is...Ch. 3.1 - Prob. 68ECh. 3.1 - Prob. 69ECh. 3.1 - Prob. 70ECh. 3.1 - Prob. 71ECh. 3.1 - 6772. In symbolic logic, the form of statements is...Ch. 3.1 - Think of real-life situation that you might want...Ch. 3.1 - Provide arguments for or against the view that...Ch. 3.2 - In Exercise 1-10, assume that p is true, q is...Ch. 3.2 - In Exercise 1-10, assume that p is true, q is...Ch. 3.2 - In Exercise 1-10, assume that p is true, q is...Ch. 3.2 - In Exercise 1-10, assume that p is true, q is...Ch. 3.2 - In Exercise 1-10, assume that p is true, q is...Ch. 3.2 - In Exercise 1-10, assume that p is true, q is...Ch. 3.2 - In Exercise 1-10, assume that p is true, q is...Ch. 3.2 - Prob. 8ECh. 3.2 - In Exercise 1-10, assume that p is true, q is...Ch. 3.2 - In Exercise 1-10, assume that p is true, q is...Ch. 3.2 - State whether the numbers given in Exercise 11-14...Ch. 3.2 - State whether the numbers given in Exercise 11-14...Ch. 3.2 - State whether the numbers given in Exercise 11-14...Ch. 3.2 - State whether the numbers given in Exercise 11-14...Ch. 3.2 - In Exercise 15-24, construct a truth table for...Ch. 3.2 - In Exercise 15-24, construct a truth table for...Ch. 3.2 - In Exercise 15-24, construct a truth table for...Ch. 3.2 - In Exercise 15-24, construct a truth table for...Ch. 3.2 - In Exercise 15-24, construct a truth table for...Ch. 3.2 - In Exercise 15-24, construct a truth table for...Ch. 3.2 - In Exercise 15-24, construct a truth table for...Ch. 3.2 - In Exercise 15-24, construct a truth table for...Ch. 3.2 - In Exercise 15-24, construct a truth table for...Ch. 3.2 - In Exercise 15-24, construct a truth table for...Ch. 3.2 - In Exercise 25-28, determine whether we are using...Ch. 3.2 - In Exercise 25-28, determine whether we are using...Ch. 3.2 - In Exercise 25-28, determine whether we are using...Ch. 3.2 - In Exercise 25-28, determine whether we are using...Ch. 3.2 - In Exercise 29-34, use DeMorgans laws to rewrite...Ch. 3.2 - In Exercise 29-34, use DeMorgans laws to rewrite...Ch. 3.2 - In Exercise 29-34, use DeMorgans laws to rewrite...Ch. 3.2 - In Exercise 29-34, use DeMorgans laws to rewrite...Ch. 3.2 - In Exercise 29-34, use DeMorgans laws to rewrite...Ch. 3.2 - In Exercise 29-34, use DeMorgans laws to rewrite...Ch. 3.2 - In Exercise 35-42, determine whether the pair of...Ch. 3.2 - In Exercise 35-42, determine whether the pair of...Ch. 3.2 - In Exercise 35-42, determine whether the pair of...Ch. 3.2 - In Exercise 35-42, determine whether the pair of...Ch. 3.2 - In Exercise 35-42, determine whether the pair of...Ch. 3.2 - In Exercise 35-42, determine whether the pair of...Ch. 3.2 - In Exercise 35-42, determine whether the pair of...Ch. 3.2 - In Exercise 35-42, determine whether the pair of...Ch. 3.2 - Exercise 43-48, deal with three-valued logic....Ch. 3.2 - Exercise 43-48, deal with three-valued logic....Ch. 3.2 - Exercise 43-48, deal with three-valued logic....Ch. 3.2 - Exercise 43-48, deal with three-valued logic....Ch. 3.2 - Exercise 43-48, deal with three-valued logic....Ch. 3.2 - Exercise 43-48, deal with three-valued logic....Ch. 3.2 - Applying What Youve Learned Use the following...Ch. 3.2 - Applying What Youve Learned Use the following...Ch. 3.2 - Prob. 51ECh. 3.2 - Prob. 52ECh. 3.2 - Prob. 53ECh. 3.2 - Prob. 54ECh. 3.2 - Prob. 55ECh. 3.2 - Prob. 56ECh. 3.2 - Prob. 57ECh. 3.2 - Prob. 58ECh. 3.2 - Prob. 59ECh. 3.2 - Prob. 60ECh. 3.2 - Prob. 61ECh. 3.2 - Prob. 62ECh. 3.2 - Use this graph based on data from the National Pet...Ch. 3.2 - Prob. 64ECh. 3.2 - In Section 3.1 page 94, we showed how to represent...Ch. 3.2 - Prob. 66ECh. 3.2 - Prob. 67ECh. 3.2 - Prob. 68ECh. 3.2 - Prob. 69ECh. 3.2 - What advantage do you see in using truth tables to...Ch. 3.2 - Prob. 71ECh. 3.2 - The and connective is necessary in the sense that...Ch. 3.2 - The stroke connective has the following truth...Ch. 3.2 - The stroke connective has the following truth...Ch. 3.2 - The stroke connective has the following truth...Ch. 3.2 - The stroke connective has the following truth...Ch. 3.3 - Prob. 1ECh. 3.3 - Prob. 2ECh. 3.3 - Prob. 3ECh. 3.3 - Prob. 4ECh. 3.3 - Prob. 5ECh. 3.3 - Prob. 6ECh. 3.3 - Prob. 7ECh. 3.3 - Prob. 8ECh. 3.3 - Prob. 9ECh. 3.3 - Prob. 10ECh. 3.3 - Prob. 11ECh. 3.3 - Prob. 12ECh. 3.3 - Prob. 13ECh. 3.3 - Prob. 14ECh. 3.3 - Prob. 15ECh. 3.3 - Prob. 16ECh. 3.3 - Prob. 17ECh. 3.3 - Prob. 18ECh. 3.3 - Prob. 19ECh. 3.3 - Prob. 20ECh. 3.3 - Prob. 21ECh. 3.3 - Prob. 22ECh. 3.3 - Prob. 23ECh. 3.3 - Prob. 24ECh. 3.3 - Prob. 25ECh. 3.3 - Prob. 26ECh. 3.3 - Prob. 27ECh. 3.3 - Prob. 28ECh. 3.3 - Assume that you begin with a statement of the form...Ch. 3.3 - Prob. 30ECh. 3.3 - Assume that you begin with a statement of the form...Ch. 3.3 - Assume that you begin with a statement of the form...Ch. 3.3 - In Exercises 3336, write the indicated statement...Ch. 3.3 - In Exercises 3336, write the indicated statement...Ch. 3.3 - Prob. 35ECh. 3.3 - Prob. 36ECh. 3.3 - In Exercises 3740, determine which pairs of...Ch. 3.3 - In Exercises 3740, determine which pairs of...Ch. 3.3 - Prob. 39ECh. 3.3 - Prob. 40ECh. 3.3 - In Exercises 4148, rewrite each statement using...Ch. 3.3 - Prob. 42ECh. 3.3 - In Exercises 4148, rewrite each statement using...Ch. 3.3 - Prob. 44ECh. 3.3 - Prob. 45ECh. 3.3 - Prob. 46ECh. 3.3 - In Exercises 4148, rewrite each statement using...Ch. 3.3 - Prob. 48ECh. 3.3 - Find the truth value for each statement in...Ch. 3.3 - Find the truth value for each statement in...Ch. 3.3 - Find the truth value for each statement in...Ch. 3.3 - Find the truth value for each statement in...Ch. 3.3 - Prob. 53ECh. 3.3 - Prob. 54ECh. 3.3 - Prob. 55ECh. 3.3 - Prob. 56ECh. 3.3 - According to an Accountemps survey appearing in...Ch. 3.3 - According to an Accountemps survey appearing in...Ch. 3.3 - According to an Accountemps survey appearing in...Ch. 3.3 - According to an Accountemps survey appearing in...Ch. 3.3 - Perhaps you have heard the term helicopter...Ch. 3.3 - Perhaps you have heard the term helicopter...Ch. 3.3 - Perhaps you have heard the term helicopter...Ch. 3.3 - Perhaps you have heard the term helicopter...Ch. 3.3 - In Exercises 6568, write the converse, inverse, or...Ch. 3.3 - In Exercises 6568, write the converse, inverse, or...Ch. 3.3 - In Exercises 6568, write the converse, inverse, or...Ch. 3.3 - In Exercises 6568, write the converse, inverse, or...Ch. 3.3 - Prob. 69ECh. 3.3 - Prob. 70ECh. 3.3 - Communicating Mathematics Give an example of a...Ch. 3.3 - Communicating Mathematics Is it possible to have a...Ch. 3.3 - Communicating Mathematics Explain why it is...Ch. 3.3 - Communicating Mathematics Why is it reasonable to...Ch. 3.3 - In Exercises 75 and 76, assume that a credit card...Ch. 3.3 - In Exercises 75 and 76, assume that a credit card...Ch. 3.3 - Challenge Yourself In Exercises 79 and 80, use...Ch. 3.3 - Challenge Yourself In Exercises 79 and 80, use...Ch. 3.3 - Prob. 81ECh. 3.3 - Prob. 82ECh. 3.3 - Prob. 83ECh. 3.3 - Prob. 84ECh. 3.3 - Exercises 85 and 86 are based on the exercise sets...Ch. 3.3 - Exercises 85 and 86 are based on the exercise sets...Ch. 3.4 - Prob. 1ECh. 3.4 - Prob. 2ECh. 3.4 - Prob. 3ECh. 3.4 - Prob. 4ECh. 3.4 - Prob. 5ECh. 3.4 - Prob. 6ECh. 3.4 - Prob. 7ECh. 3.4 - Prob. 8ECh. 3.4 - Prob. 9ECh. 3.4 - Prob. 10ECh. 3.4 - Prob. 11ECh. 3.4 - Prob. 12ECh. 3.4 - Prob. 13ECh. 3.4 - Prob. 14ECh. 3.4 - Prob. 15ECh. 3.4 - Prob. 16ECh. 3.4 - Prob. 17ECh. 3.4 - Prob. 18ECh. 3.4 - Prob. 19ECh. 3.4 - Prob. 20ECh. 3.4 - Prob. 21ECh. 3.4 - Prob. 22ECh. 3.4 - Prob. 23ECh. 3.4 - Prob. 24ECh. 3.4 - Prob. 25ECh. 3.4 - Prob. 26ECh. 3.4 - Prob. 27ECh. 3.4 - Prob. 28ECh. 3.4 - Prob. 29ECh. 3.4 - Prob. 30ECh. 3.4 - Prob. 31ECh. 3.4 - Prob. 32ECh. 3.4 - Prob. 33ECh. 3.4 - Prob. 34ECh. 3.4 - Prob. 35ECh. 3.4 - Prob. 36ECh. 3.4 - Prob. 37ECh. 3.4 - Prob. 38ECh. 3.4 - Prob. 39ECh. 3.4 - Prob. 40ECh. 3.4 - Prob. 41ECh. 3.4 - Prob. 42ECh. 3.4 - We have emphasized that the form of a logical...Ch. 3.4 - We have emphasized that the form of a logical...Ch. 3.4 - We have emphasized that the form of a logical...Ch. 3.4 - We have emphasized that the form of a logical...Ch. 3.4 - Challenge Yourself Exercises 49-52 are puzzles...Ch. 3.4 - Challenge Yourself Exercises 49-52 are puzzles...Ch. 3.4 - Challenge Yourself Exercises 49-52 are puzzles...Ch. 3.4 - In a complicated argument with many variables, it...Ch. 3.4 - In a complicated argument with many variables, it...Ch. 3.4 - In addition to the argument forms that you studies...Ch. 3.4 - In addition to the argument forms that you studies...Ch. 3.4 - In addition to the argument forms that you studies...Ch. 3.4 - In addition to the argument forms that you studies...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 116, determine whether each syllogism...Ch. 3.5 - In Exercise 1724, complete each syllogism so that...Ch. 3.5 - Prob. 18ECh. 3.5 - In Exercise 1724, complete each syllogism so that...Ch. 3.5 - Prob. 20ECh. 3.5 - In Exercise 1724, complete each syllogism so that...Ch. 3.5 - Prob. 22ECh. 3.5 - In Exercise 1724, complete each syllogism so that...Ch. 3.5 - Prob. 24ECh. 3.5 - In Exercises 25 28, write two syllogisms that can...Ch. 3.5 - In Exercises 25 28, write two syllogisms that can...Ch. 3.5 - In Exercises 25 28, write two syllogisms that can...Ch. 3.5 - In Exercises 25 28, write two syllogisms that can...Ch. 3.5 - Give an example of a valid syllogism that has a...Ch. 3.5 - Give an example of a invalid syllogism that has a...Ch. 3.5 - Draw an Euler diagram for the statements All As...Ch. 3.5 - Draw an Euler diagram for the statements Some As...Ch. 3.5 - Draw an Euler diagram for the statements No As are...Ch. 3.5 - In each of your drawings for Exercises 31 33,...Ch. 3.6 - In Exercises 1-8, assign a truth value between 0...Ch. 3.6 - In Exercises 1-8, assign a truth value between 0...Ch. 3.6 - In Exercises 1-8, assign a truth value between 0...Ch. 3.6 - In Exercises 1-8, assign a truth value between 0...Ch. 3.6 - In Exercises 1-8, assign a truth value between 0...Ch. 3.6 - In Exercises 1-8, assign a truth value between 0...Ch. 3.6 - In Exercises 1-8, assign a truth value between 0...Ch. 3.6 - In Exercises 1-8, assign a truth value between 0...Ch. 3.6 - In a Exercises 9-12, calculate the truth value of...Ch. 3.6 - Prob. 10ECh. 3.6 - Prob. 11ECh. 3.6 - In a Exercises 9-12, calculate the truth value of...Ch. 3.6 - In Exercises 13-16, consider the following fuzzy...Ch. 3.6 - In Exercises 13-16, consider the following fuzzy...Ch. 3.6 - In Exercise 13-16, consider the following fuzzy...Ch. 3.6 - In Exercise 13-16, consider the following fuzzy...Ch. 3.6 - In Exercises 17-24, assume that p has a truth...Ch. 3.6 - In Exercises 17-24, assume that p has a truth...Ch. 3.6 - Prob. 19ECh. 3.6 - In Exercises 17-24, assume that p has a truth...Ch. 3.6 - Prob. 21ECh. 3.6 - Prob. 22ECh. 3.6 - In Exercises 17-24, assume that p has a truth...Ch. 3.6 - Prob. 24ECh. 3.6 - In exercises 25-28, use the method described in...Ch. 3.6 - Prob. 26ECh. 3.6 - In exercises 25-28, use the method described in...Ch. 3.6 - In exercises 25-28, use the method described in...Ch. 3.6 - How are the rules for computing the truth tables...Ch. 3.6 - Discuss some situations in which using fuzzy logic...Ch. 3.6 - Choose a situation you will face in which you must...Ch. 3.6 - Do you have any criticisms of the decision-making...Ch. 3.CR - Prob. 1CRCh. 3.CR - Let v represent the statement I will buy a new...Ch. 3.CR - Let f represent Antonio is fluent in Spanish and...Ch. 3.CR - Negate each quantified statement and then rewrite...Ch. 3.CR - Let p represent some true statement, q represent...Ch. 3.CR - How many rows will be in the table for each...Ch. 3.CR - Construct a truth table for each statement. a....Ch. 3.CR - Negate each statement and then rewrite the...Ch. 3.CR - Which pairs of statements are logically...Ch. 3.CR - Assume we are dealing with three- valued logic and...Ch. 3.CR - Assume that p represent a true statement, q a...Ch. 3.CR - Construct a truth table for each statement. a. pq...Ch. 3.CR - Prob. 13CRCh. 3.CR - Rewrite each statement using the words if then. a....Ch. 3.CR - Section 3.4 15. Identify the form of each...Ch. 3.CR - Determine whether the form represents a valid...Ch. 3.CR - Use a truth table to determine whether the...Ch. 3.CR - In Exercises 18 and 19, use Euler diagrams to...Ch. 3.CR - In Exercises 18 and 19, use Euler diagrams to...Ch. 3.CR - Assume that p and q are fuzzy statements having...Ch. 3.CT - Which of the following are statements? a. New York...Ch. 3.CT - Negate each quantified statement and then rewrite...Ch. 3.CT - Let p represent the statement I will pass my...Ch. 3.CT - Let t represent The Tigers will win the series and...Ch. 3.CT - Prob. 5CTCh. 3.CT - If p is false and q is true and r is false, what...Ch. 3.CT - Prob. 7CTCh. 3.CT - Construct a truth table for each statement. a....Ch. 3.CT - Prob. 9CTCh. 3.CT - Negate each statement and then rewrite the...Ch. 3.CT - Determine whether the following pairs of...Ch. 3.CT - Write in words the converse, inverse, and...Ch. 3.CT - If p is true, q is false, and r is true, what is...Ch. 3.CT - Assume we are dealing with three-valued logic and...Ch. 3.CT - Prob. 15CTCh. 3.CT - Determine whether the form represents a valid...Ch. 3.CT - Identify the form of each argument. If it aint...Ch. 3.CT - In fuzzy logic, we replaced the conditional pq by...Ch. 3.CT - Use a truth table to determine if the argument is...Ch. 3.CT - Use an Euler diagram to determine whether the...
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