Mathematics All Around (6th Edition)
6th Edition
ISBN: 9780134434681
Author: Tom Pirnot
Publisher: PEARSON
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Textbook Question
Chapter 4.1, Problem 61E
Draw a graph that can be colored with only two colors.
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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 4 Solutions
Mathematics All Around (6th Edition)
Ch. 4.1 - In Exercise 1-6, determine whether the graph is...Ch. 4.1 - In Exercise 1-6, determine whether the graph is...Ch. 4.1 - In Exercise 1-6, determine whether the graph is...Ch. 4.1 - In Exercise 1-6, determine whether the graph is...Ch. 4.1 - In Exercise 1-6, determine whether the graph is...Ch. 4.1 - In Exercise 1-6, determine whether the graph is...Ch. 4.1 - In Exercises 7-12, use Eulers theorem to decide...Ch. 4.1 - In Exercises 7-12, use Eulers theorem to decide...Ch. 4.1 - In Exercises 7-12, use Eulers theorem to decide...Ch. 4.1 - In Exercises 7-12, use Eulers theorem to decide...
Ch. 4.1 - In Exercises 7-12, use Eulers theorem to decide...Ch. 4.1 - In Exercises 7-12, use Eulers theorem to decide...Ch. 4.1 - In Exercise 13-16, if the given graph is Eulerian,...Ch. 4.1 - In Exercise 13-16, if the given graph is Eulerian,...Ch. 4.1 - In Exercise 13-16, if the given graph is Eulerian,...Ch. 4.1 - In Exercise 13-16, if the given graph is Eulerian,...Ch. 4.1 - In Exercises 17-24, try to give an example of each...Ch. 4.1 - Prob. 18ECh. 4.1 - In Exercises 17-24, try to give an example of each...Ch. 4.1 - In Exercises 17-24, try to give an example of each...Ch. 4.1 - In Exercises 17-24, try to give an example of each...Ch. 4.1 - Prob. 22ECh. 4.1 - Prob. 23ECh. 4.1 - Prob. 24ECh. 4.1 - In Exercise 25-28, remove one edge to make the...Ch. 4.1 - Prob. 26ECh. 4.1 - Prob. 27ECh. 4.1 - In Exercise 25-28, remove one edge to make the...Ch. 4.1 - In Exercise 29-32, try to redraw the given graph...Ch. 4.1 - In Exercise 29-32, try to redraw the given graph...Ch. 4.1 - In Exercise 29-32, try to redraw the given graph...Ch. 4.1 - In Exercise 29-32, try to redraw the given graph...Ch. 4.1 - Finding an efficient route. A taxi driver wants to...Ch. 4.1 - Finding an efficient route. Repeat Exercises 33...Ch. 4.1 - Exercise 35 and 36 are similar to DUCK tour...Ch. 4.1 - Exercise 35 and 36 are similar to DUCK tour...Ch. 4.1 - Represent the maps given in Exercises 37-40 by...Ch. 4.1 - Represent the maps given in Exercises 37-40 by...Ch. 4.1 - Represent the maps given in Exercises 37-40 by...Ch. 4.1 - Represent the maps given in Exercises 37-40 by...Ch. 4.1 - Prob. 41ECh. 4.1 - Prob. 42ECh. 4.1 - Prob. 43ECh. 4.1 - Prob. 44ECh. 4.1 - Prob. 45ECh. 4.1 - Prob. 46ECh. 4.1 - Prob. 47ECh. 4.1 - In Exercises 4548, we give you a group of states....Ch. 4.1 - Finding an efficient route. Because of Michaels...Ch. 4.1 - Prob. 50ECh. 4.1 - Use the technique that we used in Example 7 to do...Ch. 4.1 - Use the technique that we used in Example 7 to do...Ch. 4.1 - Use the technique that we used in Example 7 to do...Ch. 4.1 - Use the technique that we used in Example 7 to do...Ch. 4.1 - If, in tracing a graph, we neither begin nor end...Ch. 4.1 - Examine a number of the graphs that we have drawn...Ch. 4.1 - Can an Eulerian graph have a bridge? In order to...Ch. 4.1 - Consider any graph that has some odd and also some...Ch. 4.1 - Discuss specific examples of ways that...Ch. 4.1 - Prob. 60ECh. 4.1 - Draw a graph that can be colored with only two...Ch. 4.1 - Draw a graph that cannot be colored with two...Ch. 4.1 - Draw a graph that cannot be colored with three...Ch. 4.1 - Can you state what configuration of vertices will...Ch. 4.1 - Different notes on a trumpet are obtained by...Ch. 4.1 - If an instrument has four valves, there are 16...Ch. 4.1 - Assume that the registrar at your school is...Ch. 4.1 - Make up a scheduling problem that would be of some...Ch. 4.2 - Prob. 1ECh. 4.2 - Prob. 2ECh. 4.2 - Prob. 3ECh. 4.2 - Prob. 4ECh. 4.2 - Prob. 5ECh. 4.2 - Prob. 6ECh. 4.2 - Prob. 7ECh. 4.2 - Prob. 8ECh. 4.2 - How many Hamilton circuits are in K7?Ch. 4.2 - How many Hamilton circuits are in K8?Ch. 4.2 - Prob. 11ECh. 4.2 - Prob. 12ECh. 4.2 - Prob. 13ECh. 4.2 - Prob. 14ECh. 4.2 - Prob. 15ECh. 4.2 - Prob. 16ECh. 4.2 - Prob. 17ECh. 4.2 - Prob. 18ECh. 4.2 - Prob. 19ECh. 4.2 - Prob. 20ECh. 4.2 - Prob. 21ECh. 4.2 - Prob. 22ECh. 4.2 - Prob. 23ECh. 4.2 - Prob. 24ECh. 4.2 - In Exercises 23 -28, use the best edge algorithm...Ch. 4.2 - Prob. 26ECh. 4.2 - In Exercise 23 -28, use the best edge algorithm to...Ch. 4.2 - In Exercise 23 -28, use the best edge algorithm to...Ch. 4.2 - Simon Cowell plans a series of live shows from...Ch. 4.2 - ESPN is planning to do a special series called...Ch. 4.2 - Foodandwine.com states that the best ice cream...Ch. 4.2 - In order to try to solve a European financial...Ch. 4.2 - Prob. 33ECh. 4.2 - Prob. 34ECh. 4.2 - Prob. 35ECh. 4.2 - Prob. 36ECh. 4.2 - Prob. 37ECh. 4.2 - Prob. 38ECh. 4.2 - Prob. 39ECh. 4.2 - Prob. 40ECh. 4.2 - Prob. 41ECh. 4.2 - Prob. 42ECh. 4.2 - Prob. 43ECh. 4.2 - Prob. 44.1ECh. 4.2 - Prob. 44.2ECh. 4.2 - Prob. 45.1ECh. 4.2 - Prob. 45.2ECh. 4.2 - Prob. 45.3ECh. 4.2 - Prob. 49ECh. 4.2 - Prob. 51ECh. 4.2 - Prob. 52ECh. 4.3 - In Exercises 1-4, use each graph to find the...Ch. 4.3 - In Exercises 1-4, use each graph to find the...Ch. 4.3 - In Exercises 1-4, use each graph to find the...Ch. 4.3 - In Exercises 1-4, use each graph to find the...Ch. 4.3 - Prob. 5ECh. 4.3 - Prob. 6ECh. 4.3 - Prob. 7ECh. 4.3 - Prob. 8ECh. 4.3 - Modeling the spread of rumours. Ryan, Dwight, Pam,...Ch. 4.3 - Modeling the spread of classified information....Ch. 4.3 - Modeling the flow of paperwork through a...Ch. 4.3 - Modeling the spread of disease. The following...Ch. 4.3 - Prob. 13ECh. 4.3 - Modeling a communication network. An AMBER alert...Ch. 4.3 - Ranking football teams. The given graph shows the...Ch. 4.3 - Ranking American Gladiators. The graph below shows...Ch. 4.3 - Modeling influence. A designer who wishes to...Ch. 4.3 - Prob. 18ECh. 4.3 - Prob. 19ECh. 4.3 - Ranking CrossFit competitors. CrossFit is a...Ch. 4.3 - Prob. 21ECh. 4.3 - Prob. 22ECh. 4.3 - Prob. 23ECh. 4.3 - Prob. 24ECh. 4.3 - Prob. 25ECh. 4.3 - Prob. 26ECh. 4.3 - Prob. 27ECh. 4.3 - Prob. 28ECh. 4.3 - Prob. 29ECh. 4.3 - Communicating Mathematics In the incidence...Ch. 4.3 - Math in Your Life: Between the Numbers The history...Ch. 4.3 - Prob. 32ECh. 4.3 - Prob. 33ECh. 4.3 - Prob. 34ECh. 4.4 - Sharpening Your Skills. In Exercises 1 4, assume...Ch. 4.4 - Sharpening Your Skills. In Exercises 1 4, assume...Ch. 4.4 - Sharpening Your Skills. In Exercises 1 4, assume...Ch. 4.4 - Sharpening Your Skills. In Exercises 1 4, assume...Ch. 4.4 - Sharpening Your Skills. In Exercises 5 8, use the...Ch. 4.4 - Sharpening Your Skills. In Exercises 5 8, use the...Ch. 4.4 - Sharpening Your Skills. In Exercises 5 8, use the...Ch. 4.4 - Sharpening Your Skills. In Exercises 5 8, use the...Ch. 4.4 - Applying What Youve Learned. Planning a festival....Ch. 4.4 - Applying What Youve Learned. Organizing a project....Ch. 4.4 - Applying What Youve Learned. Building a student...Ch. 4.4 - Applying What Youve Learned. Organizing a health...Ch. 4.4 - Applying What Youve Learned. Organizing an...Ch. 4.4 - Communicating Mathematics. Study Figure 4.35 with...Ch. 4.4 - Communicating Mathematics. Write a brief report on...Ch. 4.4 - Challenge yourself. Planning an innovative house....Ch. 4.CR - Section 4.1 Use the preceding graph to answer the...Ch. 4.CR - Section 4.1 Explain how graphs are used to model a...Ch. 4.CR - Section 4.1 Which of the following graphs can be...Ch. 4.CR - Section 4.1 Use Fleurys algorithm to find an Euler...Ch. 4.CR - Section 4.1 Model the following street map with a...Ch. 4.CR - Prob. 6CRCh. 4.CR - Section 4.1 Allison, Branden, Colin, Donny, Erica,...Ch. 4.CR - Section 4.2 Find all Hamilton circuits that begin...Ch. 4.CR - Section 4.2 Use the following weighted graph to...Ch. 4.CR - Section 4.2 Use the following weighted graph to...Ch. 4.CR - Prob. 11CRCh. 4.CR - Prob. 12CRCh. 4.CR - Section 4.3 When are directed graphs rather than...Ch. 4.CR - Section 4.3 A student action committee has been...Ch. 4.CR - Section 4.4 Use the following PERT diagram to...Ch. 4.CR - Section 4.4 Congratulations You are planning your...Ch. 4.CT - Use the preceding graph to answer the following...Ch. 4.CT - Which of the following graphs can be traced? If a...Ch. 4.CT - Use Fleurys algorithm to find an Euler circuit in...Ch. 4.CT - Find all Hamilton circuits that begin at vertex A...Ch. 4.CT - Model the following street map with a graph and...Ch. 4.CT - Prob. 6CTCh. 4.CT - Use the following weighted graph to answer...Ch. 4.CT - Use the following weighted graph to answer...Ch. 4.CT - Use the following weighted graph to answer...Ch. 4.CT - Use the given directed graph to find the following...Ch. 4.CT - Use the given PERT diagram to answer the following...Ch. 4.CT - The following graph models one- and two-stage...
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