
Mathematics for the Trades: A Guided Approach (11th Edition) (What's New in Trade Math)
11th Edition
ISBN: 9780134756967
Author: Hal Saunders, Robert Carman
Publisher: PEARSON
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Question
Chapter 9.4, Problem 1BE
To determine
The volume of the given solid object.
To determine
The total surface area of the solid object.
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For each month of the year, Taylor collected the average high temperatures in Jackson, Mississippi. He used the data to create the histogram shown. Which set of data did he use to create the histogram?
A
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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?
Chapter 9 Solutions
Mathematics for the Trades: A Guided Approach (11th Edition) (What's New in Trade Math)
Ch. 9.1 - What is the perimeter of a regular hexagon with...Ch. 9.1 - Find the area:Ch. 9.1 - Find the volume of each of the following right...Ch. 9.1 - Find the volume of each of the following right...Ch. 9.1 - Find the volume of each of the following right...Ch. 9.1 - Find the volume of each of the following right...Ch. 9.1 - Prob. 5AECh. 9.1 - Find the volume of each of the following right...Ch. 9.1 - Find the volume of each of the following right...Ch. 9.1 - Find the volume of each of the following right...
Ch. 9.1 - Find the lateral surface area and the volume of...Ch. 9.1 - Find the lateral surface area and the volume of...Ch. 9.1 - Find the lateral surface area and the volume of...Ch. 9.1 - Find the lateral surface area and the volume of...Ch. 9.1 - Find the lateral surface area and the volume of...Ch. 9.1 - Find the lateral surface area and the volume of...Ch. 9.1 - C. Find the total outside surface area and the...Ch. 9.1 - C. Find the total outside surface area and the...Ch. 9.1 - C. Find the total outside surface area and the...Ch. 9.1 - C. Find the total outside surface area and the...Ch. 9.1 - C. Find the total outside surface area and the...Ch. 9.1 - C. Find the total outside surface area and the...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.1 - Practical Applications. Round to the nearest tenth...Ch. 9.2 - What type of triangle has two equal sides?Ch. 9.2 - What is the formula for the area of an equilateral...Ch. 9.2 - Prob. 1AECh. 9.2 - Prob. 2AECh. 9.2 - Prob. 3AECh. 9.2 - Prob. 4AECh. 9.2 - Prob. 5AECh. 9.2 - Prob. 6AECh. 9.2 - Prob. 7AECh. 9.2 - Prob. 8AECh. 9.2 - Find the total outside surface area and volume of...Ch. 9.2 - Find the total outside surface area and volume of...Ch. 9.2 - Find the total outside surface area and volume of...Ch. 9.2 - Find the total outside surface area and volume of...Ch. 9.2 - Find the total outside surface area and volume of...Ch. 9.2 - Find the total outside surface area and volume of...Ch. 9.2 - Find the total outside surface area and volume of...Ch. 9.2 - B. Find the total outside surface area and volume...Ch. 9.2 - Prob. 1CECh. 9.2 - C. Practical Applications Metalworking A...Ch. 9.2 - Prob. 3CECh. 9.2 - C. Practical Applications Agriculture How many...Ch. 9.2 - C. Practical Applications Sheet Metal Trades How...Ch. 9.2 - C. Practical Applications Construction How many...Ch. 9.3 - What is the formula for the circumference of a...Ch. 9.3 - Find the area of a circle with diameter 10 cm....Ch. 9.3 - Find the lateral surface area and volume of each...Ch. 9.3 - Find the lateral surface area and volume of each...Ch. 9.3 - Find the lateral surface area and volume of each...Ch. 9.3 - Find the lateral surface area and volume of each...Ch. 9.3 - Find the lateral surface area and volume of each...Ch. 9.3 - Find the lateral surface area and volume of each...Ch. 9.3 - Find the total surface area and volume of each of...Ch. 9.3 - Find the total surface area and volume of each of...Ch. 9.3 - Find the total surface area and volume of each of...Ch. 9.3 - Find the total surface area and volume of each of...Ch. 9.3 - Find the total surface area and volume of each of...Ch. 9.3 - Find the total surface area and volume of each of...Ch. 9.3 - Practical Applications. (Round to the nearest...Ch. 9.3 - Practical Applications. (Round to the nearest...Ch. 9.3 - Practical Applications. (Round to the nearest...Ch. 9.3 - Practical Applications. (Round to the nearest...Ch. 9.3 - Practical Applications. (Round to the nearest...Ch. 9.3 - Practical Applications. (Round to the nearest...Ch. 9.3 - Practical Applications. (Round to the nearest...Ch. 9.3 - Industrial Technology How high should a 50-gal...Ch. 9.3 - Plumbing A marble-top bathroom sink has the shape...Ch. 9.3 - Sheet Metal Trades How many square inches of sheet...Ch. 9.3 - Machine Trades What is the weight of the bushing...Ch. 9.3 - Manufacturing Find the capacity in gallons of the...Ch. 9.3 - Plumbing A septic tank has the shape shown in the...Ch. 9.3 - Construction How many cubic yards of concrete are...Ch. 9.3 - Machine Trades At a density of 0.0925 lb/in.3,...Ch. 9.3 - Painting A spherical tank has a diameter of 16.5...Ch. 9.3 - Industrial Technology A cylindrical tank 72 cm in...Ch. 9.3 - Agriculture The water tower shown in the figure...Ch. 9.3 - Automotive Trades In an automobile engine, the...Ch. 9.3 - Automotive Trades A cylindrical hose 24 in. long...Ch. 9.3 - Agriculture The water trough shown in the figure...Ch. 9.3 - Painting The metal silo shown in the figure has a...Ch. 9.3 - Construction An outdoor cylindrical fire pit has...Ch. 9.3 - Water/Wastewater Treatment Due to a rupture in a...Ch. 9.3 - Manufacturing If a particular extrusion process is...Ch. 9.4 - Find c:Ch. 9.4 - Prob. 2LCCh. 9.4 - Find the lateral surface area and volume of each...Ch. 9.4 - Find the lateral surface area and volume of each...Ch. 9.4 - Find the lateral surface area and volume of each...Ch. 9.4 - Find the lateral surface area and volume of each...Ch. 9.4 - Prob. 1BECh. 9.4 - Prob. 2BECh. 9.4 - Find the lateral surface area and volume of each...Ch. 9.4 - Find the lateral surface area and volume of each...Ch. 9.4 - Prob. 1CECh. 9.4 - Find the volume of each figure. (Use 3.14 and...Ch. 9.4 - Find the volume of each figure. (Use 3.14 and...Ch. 9.4 - Find the volume of each figure. (Use 3.14 and...Ch. 9.4 - Prob. 1DECh. 9.4 - Prob. 2DECh. 9.4 - Prob. 3DECh. 9.4 - Practical Applications. (Round to the nearest...Ch. 9.4 - Prob. 5DECh. 9.4 - Practical Applications. (Round to the nearest...Ch. 9.4 - Practical Applications. (Round to the nearest...Ch. 9.4 - Practical Applications. (Round to the nearest...Ch. 9.4 - Prob. 9DECh. 9.4 - Welding A cone-shaped hopper is constructed by...Ch. 9.4 - Prob. 11DECh. 9.4 - Practical Applications. (Round to the nearest...Ch. 9.4 - Practical Applications. (Round to the nearest...Ch. 9 - Identify solid figures, including prisms, cubes,...Ch. 9 - Find the surface area and volume of solid objects....Ch. 9 - Solve practical problems involving solid figures....Ch. 9 - Solve the following problems involving solid...Ch. 9 - Solve the following problems involving solid...Ch. 9 - Solve the following problems involving solid...Ch. 9 - Solve the following problems involving solid...Ch. 9 - Solve the following problems involving solid...Ch. 9 - Solve the following problems involving solid...Ch. 9 - Solve the following problems involving solid...Ch. 9 - Solve the following problems involving solid...Ch. 9 - Solve the following problems involving solid...Ch. 9 - Solve the following problems involving solid...Ch. 9 - Solve the following problems involving solid...Ch. 9 - Prob. 12APSCh. 9 - Prob. 13APSCh. 9 - Solve the following problems involving solid...Ch. 9 - Solve the following problems involving solid...Ch. 9 - Solve the following problems involving solid...Ch. 9 - Prob. 17APSCh. 9 - Solve the following problems involving solid...Ch. 9 - Solve the following problems involving solid...Ch. 9 - Prob. 20APSCh. 9 - Prob. 21APSCh. 9 - Practical Applications Manufacturing How many...Ch. 9 - Practical Applications Construction How many cubic...Ch. 9 - Practical Applications Metalworking What is the...Ch. 9 - Practical Applications Plumbing What is the...Ch. 9 - Practical Applications Painting How many quarts of...Ch. 9 - Practical Applications Construction A hole must be...Ch. 9 - Practical Applications Manufacturing How many...Ch. 9 - Practical Applications Industrial Technology What...Ch. 9 - Practical Applications Automotive Trades At a...Ch. 9 - Practical Applications Masonry A slim jumbo...Ch. 9 - Practical Applications Construction A foundation...Ch. 9 - Practical Applications Manufacturing How many...Ch. 9 - Practical Applications Construction How many cubic...Ch. 9 - Practical Applications Sheet Metal Trades How many...Ch. 9 - Practical Applications Industrial Technology Find...Ch. 9 - Prob. 16BPSCh. 9 - Prob. 17BPSCh. 9 - Practical Applications Welding A rectangular tank...Ch. 9 - Practical Applications Automotive Trades An oil...Ch. 9 - Practical Applications Welding Calculate the...Ch. 9 - Prob. 21BPSCh. 9 - Practical Applications Welding Calculate the...Ch. 9 - Masonry A square pillar is built using 1558...Ch. 9 - Landscaping In the figure shown below, the solid...Ch. 9 - Carpentry A granite kitchen countertop is 1516 in....Ch. 9 - Prob. 26BPSCh. 9 - Prob. 27BPSCh. 9 - Prob. 28BPSCh. 9 - Prob. 29BPSCh. 9 - Prob. 30BPSCh. 9 - Landscaping A landscape contractor needs to fill...
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