Mathematics for Elementary Teachers with Activities, Books a la carte edition (5th Edition)
Mathematics for Elementary Teachers with Activities, Books a la carte edition (5th Edition)
5th Edition
ISBN: 9780134423319
Author: Sybilla Beckmann
Publisher: PEARSON
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Chapter 5.1, Problem 1P

a. Anita had 1 2 of a bag of fertilizer left. She used 3 4 of what was left. What question about Anita’s fertilizer can be answered by calculating 3 4 . 1 2 ?

b. Hermione wants to make 4 batches of a potion. Each batch of potion requires 2 3 cup of toober pus. What question about the potion will be answered by calculating 4 2 3 ?

c. There were 6 piece of pizza left. Tommy ate 3 4 of them. What question about the pizza can be answered by calculating 3 4 .6 ?

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Problem 1.We consider a two-period binomial model with the following properties: each period lastsone (1) year and the current stock price is S0 = 4. On each period, the stock price doubleswhen it moves up and is reduced by half when it moves down. The annual interest rateon the money market is 25%.  We consider four options on this market:ˆ A European call option with maturity T = 2 years and strike price K = 5;ˆ A European put option with maturity T = 2 years and strike price K = 5;ˆ An American call option with maturity T = 2 years and strike price K = 5;ˆ An American put option with maturity T = 2 years and strike price K = 5.(a) Find the price at time 0 of both European options.(b) Find the price at time 0 of both American options. Compare your results with (a)and comment.(c) For each of the American options, describe the optimal exercising strategy.(d) We assume that you sell the American put to a market participant A for the pricefound in (b). Explain how you act on the market…
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Chapter 5 Solutions

Mathematics for Elementary Teachers with Activities, Books a la carte edition (5th Edition)

Ch. 5.1 - Write a simple word problem for 23.45=? Use your...Ch. 5.1 - One serving of Gooey Gushers provides 12% of the...Ch. 5.1 - a. Write a word problem for 212.312=? b. Use math...Ch. 5.1 - Manda says that 323.215.=3.2+25.15 Explain why...Ch. 5.1 - a. Write an expression that uses both...Ch. 5.1 - a. Write an expression that uses both...Ch. 5.1 - To understand fraction multiplication thoroughly,...Ch. 5.1 - To understand fraction multiplication thoroughly...Ch. 5.1 - The liquid in a car’s radiator is 75% water and...Ch. 5.1 - * You are holding a yellow flask and a read flask....Ch. 5.1 - Discuss why we must develop an understanding of...Ch. 5.1 - Explain in your own words why multiplication means...Ch. 5.2 - Write and solve your own word problem for...Ch. 5.2 - Write a word problem for 1.32.79. Solve your...Ch. 5.2 - Leah is working on the multiplication problem...Ch. 5.2 - Run used a calculator to determine that...Ch. 5.2 - When we multiply 0.483.9, we first multiply as if...Ch. 5.2 - Suppose you multiply a decimal that has 2 digits...Ch. 5.2 - Suppose you multiply a decimal that has M digits...Ch. 5.2 - Explain how to write 1.89 and 3.57 as improper...Ch. 5.2 - A Shampoo Problem: A bottle contains 25.4 fluid...Ch. 5.2 - Determine the area of the rectangle in Figure 5.12...Ch. 5.2 - Determine the area of a 1.7-until-by-3.1-unit...Ch. 5.3 - Explain the following in your own words. Explain...Ch. 5.3 - For each of the following cases, either explain...Ch. 5.3 - For each of the following cases, either explain...Ch. 5.4 - Write the following numbers as powers of 10:...Ch. 5.4 - a. The winnings of a lottery were $250 million....Ch. 5.4 - Write the following numbers in scientific...Ch. 5.4 - Prob. 4PCh. 5.4 - Tanya says that the one digit of 259 is a 5...Ch. 5.4 - Is 2107 equal to 27? Is 1109 equal to 19? If not,...Ch. 5.4 - Calculate 8123,456,123,456 using a calculator....Ch. 5.4 - Let’s say that you want to write the product...Ch. 5.4 - Light travels at a speed of about 300,000...Ch. 5.4 - According to scientific theories, the solar system...Ch. 5.4 - Suppose that a laboratory has 1 gram of a...Ch. 5.4 - Suppose you multiply a 6-digit number by an...
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