Using & Understanding Mathematics: A Quantitative Reasoning Approach (7th Edition)
7th Edition
ISBN: 9780134705187
Author: Jeffrey O. Bennett, William L. Briggs
Publisher: PEARSON
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Chapter 9.C, Problem 49E
(a)
To determine
:
Calculate the growth rate
(b)
To determine
:
Calculate the year when will be concentration .
(c)
To determine
:
Explanation of the carbon dioxide concentration in 2090 according to research and calculation.
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2. A landlord is about to write a rental contract for a tenant which lasts T months. The
landlord first decides the length T > 0 (need not be an integer) of the contract, the
tenant then signs it and pays an initial handling fee of £100 before moving in. The
landlord collects the total amount of rent erT at the end of the contract at a continuously
compounded rate r> 0, but the contract stipulates that the tenant may leave before T,
in which case the landlord only collects the total rent up until the tenant's departure
time 7. Assume that 7 is exponentially distributed with rate > 0, λ‡r.
(i) Calculate the expected total payment EW the landlord will receive in terms of T.
(ii) Assume that the landlord has logarithmic utility U(w) = log(w - 100) and decides
that the rental rate r should depend on the contract length T by
r(T)
=
λ
√T
1
For each given λ, what T (as a function of X) should the landlord choose so as to
maximise their expected utility? Justify your answer.
Hint. It might be…
Please solving problem2
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.
Chapter 9 Solutions
Using & Understanding Mathematics: A Quantitative Reasoning Approach (7th Edition)
Ch. 9.A - Prob. 1QQCh. 9.A - Prob. 2QQCh. 9.A - Prob. 3QQCh. 9.A - Prob. 4QQCh. 9.A - 5. When you nuke a graph of the function \[z =...Ch. 9.A - 6. The values taken on by the dependent variable...Ch. 9.A - 7. Consider a function that describes how a...Ch. 9.A - Prob. 8QQCh. 9.A - Prob. 9QQCh. 9.A - 10. Suppose that two groups of scientists have...
Ch. 9.A - Prob. 1ECh. 9.A - Prob. 2ECh. 9.A - Prob. 3ECh. 9.A - Prob. 4ECh. 9.A - Prob. 5ECh. 9.A - Prob. 6ECh. 9.A - Prob. 7ECh. 9.A - 8. My mathematical model fits the data perfectly,...Ch. 9.A - Coordinate Plane Review. Use the skills covered in...Ch. 9.A - 9-10: Coordinate Plane Review. Use the skills...Ch. 9.A - Identifying Functions. In each of the following...Ch. 9.A - Prob. 12ECh. 9.A - Prob. 13ECh. 9.A - Identifying Functions. In each of the following...Ch. 9.A - Prob. 15ECh. 9.A - Prob. 16ECh. 9.A - Related Quantities. Write a short statement that...Ch. 9.A - Prob. 18ECh. 9.A - Prob. 19ECh. 9.A - Related Quantities. Write a short statement that...Ch. 9.A - Related Quantities. Write a short statement that...Ch. 9.A - 15-22: Related Quantities. Write a short statement...Ch. 9.A - 23. Pressure Function. Study Figure 9.6.
Use the...Ch. 9.A - Prob. 24ECh. 9.A - Prob. 25ECh. 9.A - Prob. 26ECh. 9.A - 25-26: Functions from Graphs. Consider the graphs...Ch. 9.A - Prob. 28ECh. 9.A - 27-30: Functions from Data Tables. Each of the...Ch. 9.A - Prob. 30ECh. 9.A - Prob. 31ECh. 9.A - Prob. 32ECh. 9.A - Rough Sketches of Functions. For each function,...Ch. 9.A - 31-42: Rough Sketches of Functions. For each...Ch. 9.A - Rough Sketches of Functions. For each function,...Ch. 9.A - Rough Sketches of Functions. For each function,...Ch. 9.A - Rough Sketches of Functions. For each function,...Ch. 9.A - Rough Sketches of Functions. For each function,...Ch. 9.A - Prob. 39ECh. 9.A - Prob. 40ECh. 9.A - Rough Sketches of Functions. For each function,...Ch. 9.A - Prob. 42ECh. 9.A - Everyday Models. Describe three different models...Ch. 9.A - 44. Functions and Variables in the News. Identity...Ch. 9.A - Prob. 45ECh. 9.A - 46. Variable Tables. Find data on the Web (or two...Ch. 9.B - A linear function is characterized by an...Ch. 9.B - You have a graph of a linear function. To...Ch. 9.B - The graph of a linear function is sloping downward...Ch. 9.B - Suppose that Figure 9. 11 is an accurate...Ch. 9.B - Which town would have the steepest slope on a...Ch. 9.B - Consider the function price = $100 - ( $3/yr) ×...Ch. 9.B - Consider the demand function given in Example 6,...Ch. 9.B - A line intersects the y-axis at a value of y = 7...Ch. 9.B - Consider a line with equation \[y = 12x - 3\]....Ch. 9.B - Charlie picks apples in the orchard at a constant...Ch. 9.B - What does it mean to say that a function is...Ch. 9.B - Prob. 2ECh. 9.B - How is the rate of change of a linear function...Ch. 9.B - 4. How do you find the change in the dependent...Ch. 9.B - 3. Describe the general equation for a linear...Ch. 9.B - Prob. 6ECh. 9.B - When I graphed the linear function, it turned out...Ch. 9.B - I graphed two linear functions, and the one with...Ch. 9.B - My freeway speed is the rate of change in my...Ch. 9.B - It's possible to make a linear model from any two...Ch. 9.B - Linear Functions. Consider the following graphs....Ch. 9.B - 11-16: Linear Functions. Consider the following...Ch. 9.B - 11-16: Linear Functions. Consider the following...Ch. 9.B - Linear Functions. Consider the following graphs a....Ch. 9.B - 11-16: Linear Functions. Consider the following...Ch. 9.B - 11-16: Linear Functions. Consider the following...Ch. 9.B - 17-22: Rate of Change Rule. The following...Ch. 9.B - 17-22: Rate of Change Rule. The following...Ch. 9.B - 17-22: Rate of Change Rule. The following...Ch. 9.B - Prob. 20ECh. 9.B - Prob. 21ECh. 9.B - Prob. 22ECh. 9.B - 23-20: Linear Equations. The following situations...Ch. 9.B - Prob. 24ECh. 9.B - 23-20: Linear Equations. The following situations...Ch. 9.B - Prob. 26ECh. 9.B - 23-28: Linear Equations. The following situations...Ch. 9.B - 23-28: linear Equations. The following situations...Ch. 9.B - 29-34: Equations from Two Data Points. Create the...Ch. 9.B - 29-34: Equations from Two Data Points. Create the...Ch. 9.B - 29-34: Equations from Two Data Points. Create the...Ch. 9.B - Equations from Two Data Points. Create the...Ch. 9.B - 29-34: Equations from Two Data Points. Create the...Ch. 9.B - Prob. 34ECh. 9.B - Prob. 35ECh. 9.B - Prob. 36ECh. 9.B - Prob. 37ECh. 9.B - Prob. 38ECh. 9.B - Prob. 39ECh. 9.B - 35-42: Algebraic Linear Equations. For the...Ch. 9.B - 35-42: Algebraic Linear Equations. For the...Ch. 9.B - Algebraic Linear Equations. For the following...Ch. 9.B - Linear Graphs. The following situations can be...Ch. 9.B - Prob. 44ECh. 9.B - Linear Graphs. The following situations can be...Ch. 9.B - Prob. 46ECh. 9.B - Prob. 47ECh. 9.B - Prob. 48ECh. 9.B - Wildlife Management. A common technique for...Ch. 9.B - Linear Models. Describe at least two situations...Ch. 9.B - 51. Nonlinear Models. Describe at least one...Ch. 9.B - Alcohol Metabolism. Most drugs are eliminated from...Ch. 9.B - Properly Depreciation. Go to the IRS website, and...Ch. 9.C - Which statement is true about exponential growth?...Ch. 9.C - A city's population starts at 100,000 people and...Ch. 9.C - A city’s population suns at 100,000 people and...Ch. 9.C - India’s 2017 population was estimated to be 1.34...Ch. 9.C - Suppose that inflation causes the value of a...Ch. 9.C - Figure 9.18(b) shows the graph of an exponentially...Ch. 9.C - Polly received a large dose of an antibiotic and...Ch. 9.C - The half-life of carbon-14 is 5700 years, and...Ch. 9.C - Radioactive uranium-235 has a half-life of about...Ch. 9.C - Compare the list two forms of the exponential...Ch. 9.C - Prob. 1ECh. 9.C - Prob. 2ECh. 9.C - 3. Describe how you tan graph an exponential...Ch. 9.C - 4. Describe the meaning of each of the three forms...Ch. 9.C - Prob. 5ECh. 9.C - Prob. 6ECh. 9.C - After 100 years, a population growing at a rate of...Ch. 9.C - When 1 used the exponential function in model the...Ch. 9.C - We can use the hurt that radioactive materials...Ch. 9.C - I used the exponential function to figure how much...Ch. 9.C - Review of logarithms. Use the skills coveted in...Ch. 9.C - Prob. 12ECh. 9.C - Prob. 13ECh. 9.C - Prob. 14ECh. 9.C - Review of logarithms. Use the skills coveted in...Ch. 9.C - 11-26: Review of logarithms. Use the skills...Ch. 9.C - 11-26: Review of logarithms. Use the skills...Ch. 9.C - 11-26: Review of logarithms. Use the skills...Ch. 9.C - Review of logarithms. Use the skills coveted in...Ch. 9.C - Prob. 20ECh. 9.C - Prob. 21ECh. 9.C - Prob. 22ECh. 9.C - Prob. 23ECh. 9.C - Prob. 24ECh. 9.C - Prob. 25ECh. 9.C - Prob. 26ECh. 9.C - 27-34. Exponential growth and decay laws. Consider...Ch. 9.C - 27-34: Exponential growth and decay laws. Consider...Ch. 9.C - . Exponential growth and decay laws. Consider the...Ch. 9.C - . Exponential growth and decay laws. Consider the...Ch. 9.C - . Exponential growth and decay laws. Consider the...Ch. 9.C - Prob. 32ECh. 9.C - Prob. 33ECh. 9.C - . Exponential growth and decay laws. Consider the...Ch. 9.C - Annual vs. Monthly Inflation. Answer the following...Ch. 9.C - Annual vs. Monthly Inflation. Answer the following...Ch. 9.C - Hyperinflation in Germany. In 1923, Germany...Ch. 9.C - Prob. 38ECh. 9.C - 39. Extinction by Poaching. Suppose that poaching...Ch. 9.C - World Oil Production. Annual world oil production...Ch. 9.C - Prob. 41ECh. 9.C - Aspirin Metabolism. Assume that for the average...Ch. 9.C - Prob. 43ECh. 9.C - Prob. 44ECh. 9.C - Prob. 45ECh. 9.C - Metropolitan Population Growth. A small city had a...Ch. 9.C - Rising Home Prices. In 2000, the median home price...Ch. 9.C - Periodic Drug Doses. It is common to take a drug...Ch. 9.C - 49. Increasing Atmospheric Carbon Dioxide. Direct...Ch. 9.C - Prob. 50ECh. 9.C - Inflation Rate in the News. Find a news report...Ch. 9.C - Prob. 52ECh. 9.C - Radiometric Dating in the News. Find a news report...Ch. 9.C - Prob. 54ECh. 9.C - Prob. 55E
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- 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)…arrow_forward5. [-/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_forward
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