
Pearson eText for College Mathematics for Trades and Technologies -- Instant Access (Pearson+)
10th Edition
ISBN: 9780137400010
Author: Cheryl Cleaves, Margie Hobbs
Publisher: PEARSON+
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Chapter 9, Problem 147RE
To determine
The standard form of the equation of the line that is perpendicular to the line
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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 9 Solutions
Pearson eText for College Mathematics for Trades and Technologies -- Instant Access (Pearson+)
Ch. 9.1 - Find y if x = 4 in the equation 3x + 2y = 6.
Ch. 9.1 - Locate the points in Fig. 9–12 by giving the...Ch. 9.1 - Prob. 2ECh. 9.1 - Prob. 3ECh. 9.1 - Prob. 4ECh. 9.1 - Prob. 5ECh. 9.1 - Prob. 6ECh. 9.1 - Prob. 7ECh. 9.1 - Prob. 8ECh. 9.1 - Prob. 9E
Ch. 9.1 - Prob. 10ECh. 9.1 - Prob. 11ECh. 9.1 - Prob. 12ECh. 9.1 - Prob. 13ECh. 9.1 - Prob. 14ECh. 9.1 - Prob. 15ECh. 9.1 - Prob. 16ECh. 9.1 - Prob. 17ECh. 9.1 - Prob. 18ECh. 9.1 - Prob. 19ECh. 9.1 - Prob. 20ECh. 9.1 - Prob. 21ECh. 9.1 - Prob. 22ECh. 9.1 - Prob. 23ECh. 9.1 - Prob. 24ECh. 9.1 - Prob. 25ECh. 9.1 - Prob. 26ECh. 9.1 - Prob. 27ECh. 9.1 - Rewrite the equation in function notation.
y = 5x...Ch. 9.1 - Rewrite the equation in function notation.
y = −3x...Ch. 9.1 - Prob. 30ECh. 9.1 - Prob. 31ECh. 9.1 - Rewrite the equation in function notation.
3x + y...Ch. 9.1 - Prob. 33ECh. 9.1 - Prob. 34ECh. 9.1 - Rewrite the equation in function notation.
x − 7y...Ch. 9.1 - Prob. 36ECh. 9.1 - Prob. 37ECh. 9.1 - Prob. 38ECh. 9.1 - Make a table of solutions to obtain at least three...Ch. 9.1 - Prob. 40ECh. 9.1 - Make a table of solutions to obtain at least three...Ch. 9.1 - Prob. 42ECh. 9.1 - Prob. 43ECh. 9.1 - Prob. 44ECh. 9.1 - Prob. 45ECh. 9.1 - Prepare a table of solutions with at least three...Ch. 9.1 - Prob. 47ECh. 9.1 - Prob. 48ECh. 9.1 - Prepare a table of solutions with at least three...Ch. 9.1 - Prob. 50ECh. 9.1 - Prob. 51ECh. 9.1 - Prob. 52ECh. 9.1 - Prob. 53ECh. 9.1 - Prob. 54ECh. 9.1 - Prob. 55ECh. 9.1 - Prob. 56ECh. 9.1 - Prob. 57ECh. 9.1 - Prob. 58ECh. 9.1 - Prob. 59ECh. 9.1 - Prob. 60ECh. 9.1 - Prob. 61ECh. 9.1 - Prob. 62ECh. 9.1 - Prob. 63ECh. 9.1 - Prob. 64ECh. 9.1 - Determine which of the ordered pairs are solutions...Ch. 9.1 - Determine which of the ordered pairs are solutions...Ch. 9.1 - Prob. 67ECh. 9.1 - Prob. 68ECh. 9.1 - Prob. 69ECh. 9.1 - Prob. 70ECh. 9.1 - Prob. 71ECh. 9.1 - Prob. 72ECh. 9.1 - Prob. 73ECh. 9.1 - Prob. 74ECh. 9.1 - Prob. 75ECh. 9.1 - Prob. 76ECh. 9.1 - Prob. 77ECh. 9.1 - Prob. 78ECh. 9.1 - Prob. 79ECh. 9.1 - Prob. 80ECh. 9.1 - Prob. 81ECh. 9.1 - Prob. 82ECh. 9.2 - Find y when x = 0 for the equation 5x – 2y = 10.
Ch. 9.2 - Prob. 1ECh. 9.2 - Prob. 2ECh. 9.2 - Prob. 3ECh. 9.2 - Find the intercepts of the equations. See Example...Ch. 9.2 - Prob. 5ECh. 9.2 - Prob. 6ECh. 9.2 - Prob. 7ECh. 9.2 - Find the intercepts of the equations. See Example...Ch. 9.2 - Prob. 9ECh. 9.2 - See Example 3.
y = −x
Ch. 9.2 - Prob. 11ECh. 9.2 - Determine the slope and y-intercept by inspection....Ch. 9.2 - Prob. 13ECh. 9.2 - Prob. 14ECh. 9.2 - Prob. 15ECh. 9.2 - Prob. 16ECh. 9.2 - Rewrite the following equations in slope-intercept...Ch. 9.2 - Prob. 18ECh. 9.2 - Prob. 19ECh. 9.2 - Prob. 20ECh. 9.2 - Prob. 21ECh. 9.2 - Graph the equations using the slope-intercept...Ch. 9.2 - Prob. 23ECh. 9.2 - Prob. 24ECh. 9.2 - Prob. 25ECh. 9.2 - Prob. 26ECh. 9.2 - Prob. 27ECh. 9.2 - Prob. 28ECh. 9.2 - Prob. 29ECh. 9.2 - Prob. 30ECh. 9.2 - Prob. 31ECh. 9.2 - Prob. 32ECh. 9.2 - Prob. 33ECh. 9.2 - Prob. 34ECh. 9.2 - BUS The cost of printing a magazine is $5,000 to...Ch. 9.2 - Prob. 36ECh. 9.2 - Prob. 37ECh. 9.2 - An inventory shows 196 jigsaw puzzles in stock....Ch. 9.2 - Prob. 39ECh. 9.2 - Prob. 40ECh. 9.2 - Prob. 41ECh. 9.2 - Prob. 42ECh. 9.2 - Prob. 43ECh. 9.2 - Prob. 44ECh. 9.2 - Graph the following linear inequalities using test...Ch. 9.2 - Prob. 46ECh. 9.2 - Graph the following linear inequalities using test...Ch. 9.2 - Prob. 48ECh. 9.2 - Prob. 49ECh. 9.2 - Prob. 50ECh. 9.2 - Prob. 51ECh. 9.2 - Prob. 52ECh. 9.2 - Prob. 53ECh. 9.2 - Prob. 54ECh. 9.3 - Prob. 1LCCh. 9.3 - Prob. 1ECh. 9.3 - Find the slope of the line passing through the...Ch. 9.3 - Prob. 3ECh. 9.3 - Find the slope of the line passing through the...Ch. 9.3 - Find the slope of the line passing through the...Ch. 9.3 - Find the slope of the line passing through the...Ch. 9.3 - Find the slope of the line passing through the...Ch. 9.3 - Find the slope of the line passing through the...Ch. 9.3 - Dee Wallace’s salary was $62,000 in 2005 and...Ch. 9.3 - If 100 backpacks cost $2,000 to produce and 800...Ch. 9.3 - An airplane takes off from the ground (altitude is...Ch. 9.3 - Use Table 9–2 for Exercises 12–18. Use the initial...Ch. 9.3 - Prob. 13ECh. 9.3 - Use Table 9–2 for Exercises 12–18. Use the initial...Ch. 9.3 - Prob. 15ECh. 9.3 - Use Table 9–2 for Exercises 12–18. Use the initial...Ch. 9.3 - Prob. 17ECh. 9.3 - Use Table 9–2 for Exercises 12–18. Use the initial...Ch. 9.3 - Prob. 19ECh. 9.3 - Find the slope of the line passing through the...Ch. 9.3 - Prob. 21ECh. 9.3 - Prob. 22ECh. 9.3 - Prob. 23ECh. 9.3 - Prob. 24ECh. 9.3 - Prob. 25ECh. 9.3 - Prob. 26ECh. 9.3 - Sketch the line passing through the pair of points...Ch. 9.3 - Prob. 28ECh. 9.3 - Prob. 29ECh. 9.3 - Sketch the line passing through the pair of points...Ch. 9.3 - Prob. 31ECh. 9.3 - Prob. 32ECh. 9.3 - Prob. 33ECh. 9.3 - Sketch the line passing through the pair of points...Ch. 9.4 - Identify the slope and y-intercept in the equation...Ch. 9.4 - Find the equation of a line passing through the...Ch. 9.4 - Prob. 2ECh. 9.4 - Prob. 3ECh. 9.4 - Find the equation of a line passing through the...Ch. 9.4 - Prob. 5ECh. 9.4 - Find the equation of a line passing through the...Ch. 9.4 - Prob. 7ECh. 9.4 - Find the equation of a line passing through the...Ch. 9.4 - Prob. 9ECh. 9.4 - Find the equation of a line passing through the...Ch. 9.4 - Prob. 11ECh. 9.4 - Prob. 12ECh. 9.4 - Write the equation of the line with the given...Ch. 9.4 - Prob. 14ECh. 9.4 - Prob. 15ECh. 9.4 - Prob. 16ECh. 9.4 - Write the equation of the line with the given...Ch. 9.4 - Prob. 18ECh. 9.4 - Prob. 19ECh. 9.4 - Prob. 20ECh. 9.4 - See Example 7.
BUS A local business rents computer...Ch. 9.4 - Prob. 22ECh. 9.4 - Prob. 23ECh. 9.4 - Prob. 24ECh. 9.4 - See Example 7.
AUTO A snowplow has a maximum speed...Ch. 9.4 - Prob. 26ECh. 9.4 - Identify the slope and y-intercept to write the...Ch. 9.4 - Prob. 28ECh. 9.4 - Prob. 29ECh. 9.4 - Write the new equations in standard form. Verify...Ch. 9.4 - Prob. 31ECh. 9.4 - Prob. 32ECh. 9.4 - Prob. 33ECh. 9.4 - Write the new equations in standard form. Verify...Ch. 9.4 - Prob. 35ECh. 9.4 - Prob. 36ECh. 9.4 - Prob. 37ECh. 9.4 - Prob. 38ECh. 9.4 - Prob. 39ECh. 9.4 - Prob. 40ECh. 9.4 - Prob. 41ECh. 9.4 - Write the new equations in standard form. Verify...Ch. 9.4 - Prob. 43ECh. 9.4 - Prob. 44ECh. 9.4 - Prob. 45ECh. 9.4 - Write the new equations in standard form. Verify...Ch. 9.4 - Prob. 47ECh. 9.4 - Prob. 48ECh. 9.4 - Prob. 49ECh. 9.4 - Prob. 50ECh. 9 - Prob. 1RECh. 9 - Prob. 2RECh. 9 - Prob. 3RECh. 9 - Prob. 4RECh. 9 - Prob. 5RECh. 9 - Prob. 6RECh. 9 - Prob. 7RECh. 9 - Prob. 8RECh. 9 - Prob. 9RECh. 9 - Prob. 10RECh. 9 - Prob. 11RECh. 9 - Prob. 12RECh. 9 - Prob. 13RECh. 9 - Prob. 14RECh. 9 - Prob. 15RECh. 9 - Prob. 16RECh. 9 - Prob. 17RECh. 9 - Represent the solutions of the equations in a...Ch. 9 - Prob. 19RECh. 9 - Prob. 20RECh. 9 - Prob. 21RECh. 9 - Prob. 22RECh. 9 - Prob. 23RECh. 9 - Prob. 24RECh. 9 - Prob. 25RECh. 9 - Prob. 26RECh. 9 - Prob. 27RECh. 9 - Prob. 28RECh. 9 - Prob. 29RECh. 9 - Prob. 30RECh. 9 - Prob. 31RECh. 9 - Prob. 32RECh. 9 - Prob. 33RECh. 9 - Prob. 34RECh. 9 - Prob. 35RECh. 9 - Prob. 36RECh. 9 - Prob. 37RECh. 9 - Prob. 38RECh. 9 - Prob. 39RECh. 9 - Prob. 40RECh. 9 - Prob. 41RECh. 9 - Prob. 42RECh. 9 - Prob. 43RECh. 9 - Prob. 44RECh. 9 - Prob. 45RECh. 9 - Prob. 46RECh. 9 - Prob. 47RECh. 9 - Prob. 48RECh. 9 - Prob. 49RECh. 9 - Prob. 50RECh. 9 - Prob. 51RECh. 9 - Prob. 52RECh. 9 - Prob. 53RECh. 9 - Prob. 54RECh. 9 - Prob. 55RECh. 9 - Prob. 56RECh. 9 - Prob. 57RECh. 9 - Prob. 58RECh. 9 - Prob. 59RECh. 9 - Prob. 60RECh. 9 - Prob. 61RECh. 9 - Prob. 62RECh. 9 - Prob. 63RECh. 9 - Prob. 64RECh. 9 - Prob. 65RECh. 9 - Prob. 66RECh. 9 - Prob. 67RECh. 9 - Prob. 68RECh. 9 - Prob. 69RECh. 9 - Prob. 70RECh. 9 - Prob. 71RECh. 9 - Prob. 72RECh. 9 - Prob. 73RECh. 9 - Prob. 74RECh. 9 - Prob. 75RECh. 9 - Prob. 76RECh. 9 - Prob. 77RECh. 9 - Prob. 78RECh. 9 - Prob. 79RECh. 9 - Prob. 80RECh. 9 - Prob. 81RECh. 9 - Prob. 82RECh. 9 - Prob. 83RECh. 9 - Prob. 84RECh. 9 - Prob. 85RECh. 9 - Prob. 86RECh. 9 - Prob. 87RECh. 9 - Prob. 88RECh. 9 - Prob. 89RECh. 9 - Prob. 90RECh. 9 - Prob. 91RECh. 9 - Prob. 92RECh. 9 - Prob. 93RECh. 9 - Prob. 94RECh. 9 - Prob. 95RECh. 9 - Prob. 96RECh. 9 - Prob. 97RECh. 9 - Prob. 98RECh. 9 - Prob. 99RECh. 9 - Prob. 100RECh. 9 - Prob. 101RECh. 9 - Prob. 102RECh. 9 - Prob. 103RECh. 9 - Prob. 104RECh. 9 - Prob. 105RECh. 9 - Prob. 106RECh. 9 - Prob. 107RECh. 9 - Prob. 108RECh. 9 - Prob. 109RECh. 9 - Prob. 110RECh. 9 - Prob. 111RECh. 9 - Prob. 112RECh. 9 - Prob. 113RECh. 9 - Prob. 114RECh. 9 - Prob. 115RECh. 9 - Prob. 116RECh. 9 - Prob. 117RECh. 9 - Prob. 118RECh. 9 - Prob. 119RECh. 9 - Prob. 120RECh. 9 - Prob. 121RECh. 9 - Prob. 122RECh. 9 - Prob. 123RECh. 9 - Prob. 124RECh. 9 - Prob. 125RECh. 9 - Prob. 126RECh. 9 - Prob. 127RECh. 9 - Prob. 128RECh. 9 - Prob. 129RECh. 9 - Prob. 130RECh. 9 - Prob. 131RECh. 9 - Prob. 132RECh. 9 - Prob. 133RECh. 9 - Prob. 134RECh. 9 - Prob. 135RECh. 9 - Prob. 136RECh. 9 - Prob. 137RECh. 9 - Prob. 138RECh. 9 - Prob. 139RECh. 9 - Prob. 140RECh. 9 - Prob. 141RECh. 9 - Prob. 142RECh. 9 - Prob. 143RECh. 9 - Prob. 144RECh. 9 - Prob. 145RECh. 9 - Prob. 146RECh. 9 - Prob. 147RECh. 9 - Prob. 148RECh. 9 - Prob. 149RECh. 9 - Prob. 150RECh. 9 - Prob. 151RECh. 9 - Prob. 152RECh. 9 - Prob. 153RECh. 9 - Prob. 154RECh. 9 - Prob. 1CACh. 9 - Describe the graph of a line with slope that is...Ch. 9 - Prob. 3CACh. 9 - Prob. 4CACh. 9 - Prob. 5CACh. 9 - Prob. 6CACh. 9 - Prob. 7CACh. 9 - Prob. 8CACh. 9 - Prob. 9CACh. 9 - Prob. 10CACh. 9 - Prob. 11CACh. 9 - Prob. 12CACh. 9 - Prob. 13CACh. 9 - Prob. 14CACh. 9 - Prob. 15CACh. 9 - Prob. 16CACh. 9 - Prob. 17CACh. 9 - Prob. 18CACh. 9 - Prob. 19CACh. 9 - Prob. 20CACh. 9 - Prob. 1PTCh. 9 - Prob. 2PTCh. 9 - Prob. 3PTCh. 9 - Prob. 4PTCh. 9 - Prob. 5PTCh. 9 - Prob. 6PTCh. 9 - Prob. 7PTCh. 9 - Prob. 8PTCh. 9 - Prob. 9PTCh. 9 - Prob. 10PTCh. 9 - Prob. 11PTCh. 9 - Prob. 12PTCh. 9 - Prob. 13PTCh. 9 - Prob. 14PTCh. 9 - Prob. 15PTCh. 9 - Prob. 16PTCh. 9 - Prob. 17PTCh. 9 - Prob. 18PTCh. 9 - Prob. 19PTCh. 9 - Prob. 20PTCh. 9 - Prob. 21PTCh. 9 - Prob. 22PTCh. 9 - Prob. 23PTCh. 9 - Prob. 24PTCh. 9 - Prob. 25PTCh. 9 - Prob. 26PTCh. 9 - Prob. 27PTCh. 9 - Prob. 28PTCh. 9 - Prob. 29PTCh. 9 - Prob. 30PTCh. 9 - Prob. 31PTCh. 9 - Prob. 32PTCh. 9 - Prob. 33PTCh. 9 - Prob. 34PTCh. 9 - Prob. 35PTCh. 9 - Prob. 36PTCh. 9 - Prob. 37PT
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