Discrete Mathematics and Its Applications ( 8th International Edition ) ISBN:9781260091991
8th Edition
ISBN: 9781259676512
Author: Kenneth H Rosen
Publisher: McGraw-Hill Education
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Chapter 7, Problem 30SE
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The probability that more than
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Problem1
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%. (This model is the same as in Prob. 1 of HW#2).We consider four options on this market: A European call option with maturity T = 2 years and strike price K = 5; A European put option with maturity T = 2 years and strike price K = 5; An American call option with maturity T = 2 years and strike price K = 5; 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.
Please ensure that all parts of the question are answered thoroughly and clearly. Include a diagram to help explain answers. Make sure the explanation is easy to follow. Would appreciate work done written on paper. Thank you.
This question builds on an earlier problem. The randomized numbers may have changed, but have your work for the previous problem available to help with this one.
A 4-centimeter rod is attached at one end to a point A rotating counterclockwise on a wheel of radius 2 cm. The other end B is free to move back and forth along a horizontal bar that goes through the center of the wheel. At time t=0 the rod is situated as in the diagram at the left below. The
wheel rotates counterclockwise at 1.5 rev/sec. At some point, the rod will be tangent to the circle as shown in the third picture.
A
B
A
B
at some instant, the piston will be tangent to the circle
(a) Express the x and y coordinates of point A as functions of t:
x= 2 cos(3πt)
and y= 2 sin(3t)
(b) Write a formula for the slope of the tangent line to the circle at the point A at time t seconds:
-cot(3πt)
sin(3лt)
(c) Express the x-coordinate of the right end of the rod at point B as a function of t: 2 cos(3πt) +411-
4
-2 sin (3лt)
(d)…
Chapter 7 Solutions
Discrete Mathematics and Its Applications ( 8th International Edition ) ISBN:9781260091991
Ch. 7.1 - i. What is the probability that a card selected at...Ch. 7.1 - t istheprobability that a fair die comes up six...Ch. 7.1 - t is the probability that a randomly selected...Ch. 7.1 - What is the probability7that a randomly selected...Ch. 7.1 - t is the probability that the sum of the numbers...Ch. 7.1 - t is the probability that a card selected at...Ch. 7.1 - t is the probability that when a coin is flipped...Ch. 7.1 - t is the probability that a five-card poker hand...Ch. 7.1 - t is the probability that a five-card poker hand...Ch. 7.1 - t is the probability that a five-card poker hand...
Ch. 7.1 - Prob. 11ECh. 7.1 - t is the probability that afive-card poker hand...Ch. 7.1 - t is the probability tliat afive-card poker hand...Ch. 7.1 - t istheprobability that a five-card poker hand...Ch. 7.1 - t is theprobabilifrthatafive-cardpoker hand...Ch. 7.1 - t is the probability7that a five-card poker hand...Ch. 7.1 - Prob. 17ECh. 7.1 - Mat is the probability' that a five-card poker...Ch. 7.1 - Prob. 19ECh. 7.1 - probabihh’thatafiM^Ch. 7.1 - Prob. 21ECh. 7.1 - t is the probability that a positive integer not...Ch. 7.1 - t is the probability that a positive integer not...Ch. 7.1 - Prob. 24ECh. 7.1 - - Find the probability of winning a lottery by...Ch. 7.1 - 26.Find the pr obabilitj- of selecting none of the...Ch. 7.1 - Prob. 27ECh. 7.1 - Prob. 28ECh. 7.1 - Prob. 29ECh. 7.1 - Prob. 30ECh. 7.1 - Prob. 31ECh. 7.1 - Prob. 32ECh. 7.1 - i$theprobabilitytiiatAbby,Barry,andSy^...Ch. 7.1 - 34.Mat is the probability' that Bo, Colleen, Jeff,...Ch. 7.1 - roulette, a wheel with 38 numbers is spun. Of...Ch. 7.1 - ch is more likely: rolling a total of 8 when two...Ch. 7.1 - ch is more likely: rolling a total of 9 when hvo...Ch. 7.1 - A player in the Mega Millions lottery picks five...Ch. 7.1 - a player buys a Mega Millions ticket in many...Ch. 7.1 - A player in the Powerball lottery picks five...Ch. 7.1 - Aplayer in the Powerball lottery (see Exercise 40)...Ch. 7.1 - Two events E i and E2are calledindependentifp(Etfl...Ch. 7.1 - Prob. 43ECh. 7.1 - Suppose that instead of three doors, there are...Ch. 7.1 - s problem was posed by the Chevalier de Mere and...Ch. 7.2 - Prob. 1ECh. 7.2 - Prob. 2ECh. 7.2 - Prob. 3ECh. 7.2 - w that conditions (2) and (22) are met under...Ch. 7.2 - A pair of dice is loaded. The probability that a 4...Ch. 7.2 - t is the probability of these events when we...Ch. 7.2 - t is the probability of these events when we...Ch. 7.2 - 8.What is the probability of these events when we...Ch. 7.2 - t is the probability of these events when we...Ch. 7.2 - What is the probability of these events when we...Ch. 7.2 - pose, that £ and F are. events such that d(£)=0.7...Ch. 7.2 - pose that £ and Fare events such thatp(£) = 0.8...Ch. 7.2 - w that if £ and F are events, thenpfEn F) >p(E) +...Ch. 7.2 - Use mathematical induction to prove the following...Ch. 7.2 - w that if £x, £2,Enare events from afinite sample...Ch. 7.2 - Show that iff and f are independent events,...Ch. 7.2 - 17,It £ and F are independent events, prove or...Ch. 7.2 - What is the probability that hvo people chosen at...Ch. 7.2 - Mat is the probability that two people chosen at...Ch. 7.2 - Prob. 20ECh. 7.2 - Prob. 21ECh. 7.2 - February 29 occurs only inleap years, Years...Ch. 7.2 - ^Tiat is the conditional probabilitv that exactly...Ch. 7.2 - What is the. conditional probabilih' that exactly...Ch. 7.2 - Prob. 25ECh. 7.2 - Let Ebe the event that aranmly generated bit...Ch. 7.2 - Prob. 27ECh. 7.2 - a8. Assume that the probability a child is a boy...Ch. 7.2 - A group of six people play the game of “ odd...Ch. 7.2 - Find the probability that a randomly generated bit...Ch. 7.2 - Find the probability that a family with five...Ch. 7.2 - Prob. 32ECh. 7.2 - Prob. 33ECh. 7.2 - Find each of the following probabilities...Ch. 7.2 - d each of the following probabilities...Ch. 7.2 - Prob. 36ECh. 7.2 - Prob. 37ECh. 7.2 - 38.A pair of dice is rolled in a remote location...Ch. 7.2 - This exercise employs the probabilistic method to...Ch. 7.2 - Dense a Monte Carlo algorithm that determines...Ch. 7.2 - pseudocode to write out the probabilistic...Ch. 7.3 - i.Suppose that £ andFare events in a sample space...Ch. 7.3 - Suppose that Land Fare events in a sample space...Ch. 7.3 - 3.Suppose that Frida selects a ball by first...Ch. 7.3 - 4.Suppo s e that Ann selects a ball by first...Ch. 7.3 - Prob. 5ECh. 7.3 - Prob. 6ECh. 7.3 - Prob. 7ECh. 7.3 - 8,Suppose that one person in 10,000 people has a...Ch. 7.3 - Suppose that 8% of the patients tested in a clinic...Ch. 7.3 - io,Suppose that 4% of the patients tested in a...Ch. 7.3 - ...Ch. 7.3 - ...Ch. 7.3 - Prob. 13ECh. 7.3 - Prob. 14ECh. 7.3 - In this exercise we will use Bayes' theorem to...Ch. 7.3 - Prob. 16ECh. 7.3 - Prob. 17ECh. 7.3 - 18.Suppose that a Bayesian spam filter is trained...Ch. 7.3 - 19,Suppose that a Bayesian spam filter is trained...Ch. 7.3 - Prob. 20ECh. 7.3 - ,Suppose that a Bayesian spam filter is trained on...Ch. 7.3 - Suppose that we have prior information concerning...Ch. 7.3 - Prob. 23ECh. 7.4 - t is the expected number of heads that come up...Ch. 7.4 - t is the expected number of heads that come up...Ch. 7.4 - t is the expected number of times a 6 appears when...Ch. 7.4 - A coin is biased so that the probability a head...Ch. 7.4 - ^Tiat is the expected sum of the numbers that...Ch. 7.4 - Prob. 6ECh. 7.4 - final exam of a discrete mathematics course...Ch. 7.4 - t is the expected sum of the numbers that appear...Ch. 7.4 - Prob. 9ECh. 7.4 - Suppose that we flip a fair coin until either it...Ch. 7.4 - Suppose that we roll a fair die until a 6 conies...Ch. 7.4 - pose that we roll a fair die until a 6 comes up....Ch. 7.4 - pose thatwerollapairoffair dice...Ch. 7.4 - Show that the sum of the probabilities of a random...Ch. 7.4 - Show that if the random variable A'has the...Ch. 7.4 - Prob. 16ECh. 7.4 - Prob. 17ECh. 7.4 - Prob. 18ECh. 7.4 - Prob. 19ECh. 7.4 - Show that if J2,...,Xnare mutually independent...Ch. 7.4 - What is the expected value of the sum of the...Ch. 7.4 - as.Provethelaw of total expectations.Ch. 7.4 - Prob. 23ECh. 7.4 - Prob. 24ECh. 7.4 - A run is a maximal sequence of successes in a...Ch. 7.4 - a6.Let J(s) be a random variable, where I(s) is a...Ch. 7.4 - What is the variance of the number of heads that...Ch. 7.4 - t is the variance ot the number of times a 6...Ch. 7.4 - LetXnbe the random variable that equals the number...Ch. 7.4 - w that ifXand Fare independent random variables,...Ch. 7.4 - Prob. 31ECh. 7.4 - Pronde an example that shows that the variance of...Ch. 7.4 - pose that A\ andX2are independent Bernoulli trials...Ch. 7.4 - Prove the general caseofTheoremy. That is, show...Ch. 7.4 - Prob. 35ECh. 7.4 - Prob. 36ECh. 7.4 - Prob. 37ECh. 7.4 - pose that the number of cans of soda pop filled in...Ch. 7.4 - 39.Suppose that the number of aluminum cans...Ch. 7.4 - pose the probabilitvthatxis the...Ch. 7.4 - In this exercise we derive an estimate of the...Ch. 7.4 - Prob. 42ECh. 7.4 - to is the variance of the number of fixed...Ch. 7.4 - Prob. 44ECh. 7.4 - Prob. 45ECh. 7.4 - Prob. 46ECh. 7.4 - Prob. 47ECh. 7.4 - Prob. 48ECh. 7.4 - Prob. 49ECh. 7 - Define the probability of an event when all...Ch. 7 - WTiat conditions should be met by the...Ch. 7 - Define, the conditional probability’ of an event £...Ch. 7 - Prob. 4RQCh. 7 - tois a random variable? toare the possible values...Ch. 7 - Prob. 6RQCh. 7 - Explain how the average-case computational...Ch. 7 - Prob. 8RQCh. 7 - What does the linearity of expectations of random...Ch. 7 - Prob. 10RQCh. 7 - Prob. 11RQCh. 7 - Prob. 12RQCh. 7 - Prob. 13RQCh. 7 - What is the variance of the sum of n independent...Ch. 7 - Prob. 15RQCh. 7 - Prob. 1SECh. 7 - 2012, a player in the Mega Millions lottery picks...Ch. 7 - 2012, a player in the Powerball lottery picks five...Ch. 7 - t is the probability that a hand of 13 cards...Ch. 7 - t is the probability that a 13-card bridge hand...Ch. 7 - t is the probability that a seven-card poker hand...Ch. 7 - What is the expected value of the number that...Ch. 7 - What is the expected value of the number that...Ch. 7 - Suppose that a pair of fair octahedral dice is...Ch. 7 - io.Suppose that a pair offaiir dodecahedral diceis...Ch. 7 - ii.Supp o s e that a fair standard (cubic) die and...Ch. 7 - Prob. 12SECh. 7 - (mpeople!n>3!play“oddp™ut’todeadeMo^...Ch. 7 - Prob. 14SECh. 7 - posethatmandnarepositiYeintegers.Bat is...Ch. 7 - pose thatEt, E2,Enarenevents with p(£j) >o fori...Ch. 7 - Prob. 17SECh. 7 - t is the probability that when a fair coin is...Ch. 7 - t is the probability that a randomly selected bit...Ch. 7 - t is the probability that a randomly selected bit...Ch. 7 - sider the following game. A per son flips a coin...Ch. 7 - pose that n halls are tossed intobbins so that...Ch. 7 - posethatAandBareeventswthprobabilitiesp(A) =...Ch. 7 - posethat/l andB are events...Ch. 7 - all fromDefinition jinSection 7,2that the events...Ch. 7 - ...Ch. 7 - Prob. 27SECh. 7 - Prob. 28SECh. 7 - Prob. 29SECh. 7 - Prob. 30SECh. 7 - Prob. 31SECh. 7 - Prob. 32SECh. 7 - Prob. 33SECh. 7 - maximum satisfiability problemasks for an...Ch. 7 - Prob. 35SECh. 7 - The following method can be used to generate a...Ch. 7 - Prob. 1CPCh. 7 - Prob. 2CPCh. 7 - Prob. 3CPCh. 7 - Prob. 4CPCh. 7 - Prob. 5CPCh. 7 - ...Ch. 7 - Prob. 7CPCh. 7 - Prob. 8CPCh. 7 - Prob. 9CPCh. 7 - ulaterepeated trials oftheMoufr Hall Three-Door...Ch. 7 - Prob. 11CPCh. 7 - Prob. 1CAECh. 7 - Prob. 2CAECh. 7 - Prob. 3CAECh. 7 - Prob. 4CAECh. 7 - Prob. 5CAECh. 7 - Prob. 6CAECh. 7 - Prob. 7CAECh. 7 - Prob. 8CAECh. 7 - cribe the origins of probability theory and the...Ch. 7 - Prob. 2WPCh. 7 - 3.Discuss the probability' of winning when you...Ch. 7 - estigate the game of craps and discuss the...Ch. 7 - Prob. 5WPCh. 7 - Prob. 6WPCh. 7 - lain how Erdos and Renvi first used the...Ch. 7 - cuss the different types of probabilistic...
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- 5. [-/1 Points] DETAILS MY NOTES SESSCALCET2 6.5.AE.003. y y= ex² 0 Video Example x EXAMPLE 3 (a) Use the Midpoint Rule with n = 10 to approximate the integral कर L'ex² dx. (b) Give an upper bound for the error involved in this approximation. SOLUTION 8+2 1 L'ex² d (a) Since a = 0, b = 1, and n = 10, the Midpoint Rule gives the following. (Round your answer to six decimal places.) dx Ax[f(0.05) + f(0.15) + ... + f(0.85) + f(0.95)] 0.1 [0.0025 +0.0225 + + e0.0625 + 0.1225 e0.3025 + e0.4225 + e0.2025 + + e0.5625 €0.7225 +0.9025] The figure illustrates this approximation. (b) Since f(x) = ex², we have f'(x) = 0 ≤ f'(x) = < 6e. ASK YOUR TEACHER and f'(x) = Also, since 0 ≤ x ≤ 1 we have x² ≤ and so Taking K = 6e, a = 0, b = 1, and n = 10 in the error estimate, we see that an upper bound for the error is as follows. (Round your final answer to five decimal places.) 6e(1)3 e 24( = ≈arrow_forward1. Consider the following preference ballots: Number of voters Rankings 6 5 4 2 1st choice A DCB DC 2nd choice B B D 3rd choice DCBD 4th choice CA AAA For each of the four voting systems we have studied, determine who would win the election in each case. (Remember: For plurality with runoff, all but the top two vote-getters are simultaneously eliminated at the end of round 1.)arrow_forwardPractice k Help ises A 96 Anewer The probability that you get a sum of at least 10 is Determine the number of ways that the specified event can occur when two number cubes are rolled. 1. Getting a sum of 9 or 10 3. Getting a sum less than 5 2. Getting a sum of 6 or 7 4. Getting a sum that is odd Tell whether you would use the addition principle or the multiplication principle to determine the total number of possible outcomes for the situation described. 5. Rolling three number cubes 6. Getting a sum of 10 or 12 after rolling three number cubes A set of playing cards contains four groups of cards designated by color (black, red, yellow, and green) with cards numbered from 1 to 14 in each group. Determine the number of ways that the specified event can occur when a card is drawn from the set. 7. Drawing a 13 or 14 9. Drawing a number less than 4 8. Drawing a yellow or green card 10. Drawing a black, red, or green car The spinner is divided into equal parts. Find the specified…arrow_forward
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