Finite Mathematics, Books a la Carte Plus MyLab Math Access Card Package (11th Edition)
11th Edition
ISBN: 9780133886818
Author: Margaret L. Lial, Raymond N. Greenwell, Nathan P. Ritchey
Publisher: PEARSON
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Textbook Question
Chapter R.5, Problem 5E
Write each expression in interval notation. Graph each interval.
−9 > x
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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
55, 60, 64, 72, 73, 75, 77, 81, 83, 91, 91, 92\ 55,\ 60,\ 64,\ 72,\ 73,\ 75,\ 77,\ 81,\ 83,\ 91,\ 91,\ 92 55, 60, 64, 72, 73, 75, 77, 81, 83, 91, 91, 92
B
55, 57, 60, 65, 70, 71, 78, 79, 85, 86, 88, 91\ 55,\ 57,\ 60,\ 65,\ 70,\ 71,\ 78,\ 79,\ 85,\ 86,\ 88,\ 91 55, 57, 60, 65, 70, 71, 78, 79, 85, 86, 88, 91
C
55, 60, 63, 64, 65, 71, 83, 87, 88, 88, 89, 93\ 55,\ 60,\ 63,\ 64,\ 65,\ 71,\ 83,\ 87,\ 88,\ 88,\ 89,\ 93 55, 60, 63, 64, 65, 71, 83, 87, 88, 88, 89, 93
D
55, 58, 60, 66, 68, 75, 77, 82, 86, 89, 91, 91\ 55,\ 58,\ 60,\ 66,\ 68,\ 75,\ 77,\ 82,\ 86,\ 89,\ 91,\ 91 55, 58, 60, 66, 68, 75, 77, 82, 86, 89, 91, 91
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.)
Chapter R Solutions
Finite Mathematics, Books a la Carte Plus MyLab Math Access Card Package (11th Edition)
Ch. R.1 - Perform the indicated operations. (2x2 - 6x + 11)...Ch. R.1 - Perform the indicated operation (-4y2 - 3y + 8) -...Ch. R.1 - Perform the indicated operations. -6(2q2 + 4q - 3)...Ch. R.1 - Perform the indicated operations. 2(3r2 + 4r + 2)...Ch. R.1 - Perform the indicated operations. (0.613x2 -...Ch. R.1 - Perform the indicated operations. 0.5(5r2 + 3.2r -...Ch. R.1 - Perform the indicated operations. -9m(2m2 + 3m -...Ch. R.1 - Perform the indicated operations. 6x(-2x3 + 5x +...Ch. R.1 - Perform the indicated operutions. (3t - 2y)(3t +...Ch. R.1 - Perform the indicated Operations. (9k + q)(2k - q)
Ch. R.1 - Perform the indicated operations. (2 - 3x)(2 + 3x)Ch. R.1 - Perform the indicated operations. (6m + 5)(6m - 5)Ch. R.1 - Perform the indicated operations....Ch. R.1 - Perform the indicated operations....Ch. R.1 - Perform the indicated operations. (3p - 1)(9p2 +...Ch. R.1 - Perform the indicated operations. (3p+ 2)(5p2 + p...Ch. R.1 - Perform the indicated operations. (2m + 1 )(4m2 -...Ch. R.1 - Perform the indicated operations. (k + 2)(12k3 -...Ch. R.1 - Perform the indicated operations. (x + y + z)(3x -...Ch. R.1 - Perform the indicated operations. (r + 2s - 3t)(2r...Ch. R.1 - Perform the indicated operations. (x + 1)(x + 2)(x...Ch. R.1 - Perform the indicated operations. (x - l)(x + 2)(x...Ch. R.1 - Perform the indicated operations. (x + 2)2Ch. R.1 - Perform the indicated operations. (2a - 4b)2Ch. R.1 - Perform the indicated operations. (x - 2y)3Ch. R.1 - Perform the indicated operations. (3x + y)3Ch. R.2 - Factor each polynomial. If a polynomial cannot be...Ch. R.2 - Prob. 2ECh. R.2 - Factor each polynomial. If a polynomial cannot be...Ch. R.2 - Prob. 4ECh. R.2 - Prob. 5ECh. R.2 - Prob. 6ECh. R.2 - Prob. 7ECh. R.2 - Prob. 8ECh. R.2 - Prob. 9ECh. R.2 - Factor each polynomial. If a polynomial cannot be...Ch. R.2 - Prob. 11ECh. R.2 - Prob. 12ECh. R.2 - Prob. 13ECh. R.2 - Prob. 14ECh. R.2 - Prob. 15ECh. R.2 - Prob. 16ECh. R.2 - Prob. 17ECh. R.2 - Prob. 18ECh. R.2 - Prob. 19ECh. R.2 - Prob. 20ECh. R.2 - Prob. 21ECh. R.2 - Prob. 22ECh. R.2 - Prob. 23ECh. R.2 - Prob. 24ECh. R.2 - Prob. 25ECh. R.2 - Prob. 26ECh. R.2 - Prob. 27ECh. R.2 - Prob. 28ECh. R.2 - Prob. 29ECh. R.2 - Prob. 30ECh. R.2 - Prob. 31ECh. R.2 - Prob. 32ECh. R.3 - Write each rational expression in lowest terms....Ch. R.3 - Write each rational expression in lowest terms....Ch. R.3 - Prob. 3ECh. R.3 - Prob. 4ECh. R.3 - Prob. 5ECh. R.3 - Prob. 6ECh. R.3 - Prob. 7ECh. R.3 - Prob. 8ECh. R.3 - Prob. 9ECh. R.3 - Write each rational expression in lowest terms....Ch. R.3 - Prob. 11ECh. R.3 - Prob. 12ECh. R.3 - Prob. 13ECh. R.3 - Prob. 14ECh. R.3 - Prob. 15ECh. R.3 - Prob. 16ECh. R.3 - Prob. 17ECh. R.3 - Prob. 18ECh. R.3 - Prob. 19ECh. R.3 - Prob. 20ECh. R.3 - Prob. 21ECh. R.3 - Prob. 22ECh. R.3 - Prob. 23ECh. R.3 - Prob. 24ECh. R.3 - Prob. 25ECh. R.3 - Prob. 26ECh. R.3 - Prob. 27ECh. R.3 - Prob. 28ECh. R.3 - Prob. 29ECh. R.3 - Prob. 30ECh. R.3 - Prob. 31ECh. R.3 - Prob. 32ECh. R.3 - Prob. 33ECh. R.3 - Prob. 34ECh. R.3 - Prob. 35ECh. R.3 - Prob. 36ECh. R.3 - Prob. 37ECh. R.3 - Perform the indicated operations....Ch. R.4 - Solve each equation. 2x + 8 = x 4Ch. R.4 - Solve each equation. 5x + 2 = 8 3xCh. R.4 - Prob. 3ECh. R.4 - Prob. 4ECh. R.4 - Prob. 5ECh. R.4 - Prob. 6ECh. R.4 - Prob. 7ECh. R.4 - Prob. 8ECh. R.4 - Prob. 9ECh. R.4 - Solve each equation by factoring or by using the...Ch. R.4 - Prob. 11ECh. R.4 - Prob. 12ECh. R.4 - Prob. 13ECh. R.4 - Prob. 14ECh. R.4 - Solve each equation by factoring or by using the...Ch. R.4 - Prob. 16ECh. R.4 - Prob. 17ECh. R.4 - Prob. 18ECh. R.4 - Prob. 19ECh. R.4 - Prob. 20ECh. R.4 - Solve each equation by factoring or by using the...Ch. R.4 - Prob. 22ECh. R.4 - Prob. 23ECh. R.4 - Prob. 24ECh. R.4 - Prob. 25ECh. R.4 - Solve each equation by factoring or by using the...Ch. R.4 - Solve each equation. 3x27=x+25Ch. R.4 - Prob. 28ECh. R.4 - Solve each equation. 4x382x+5+3x3=0Ch. R.4 - Prob. 30ECh. R.4 - Solve each equation. 2mm26m=12m22mCh. R.4 - Prob. 32ECh. R.4 - Prob. 33ECh. R.4 - Prob. 34ECh. R.4 - Prob. 35ECh. R.4 - Prob. 36ECh. R.4 - Prob. 37ECh. R.5 - Write each expression in interval notation. Graph...Ch. R.5 - Prob. 2ECh. R.5 - Write each expression in interval notation. Graph...Ch. R.5 - Prob. 4ECh. R.5 - Write each expression in interval notation. Graph...Ch. R.5 - Prob. 6ECh. R.5 - Prob. 7ECh. R.5 - Prob. 8ECh. R.5 - Prob. 9ECh. R.5 - Prob. 10ECh. R.5 - Prob. 11ECh. R.5 - Using the variable x, write each interval as an...Ch. R.5 - Using the variable x, write each interval as an...Ch. R.5 - Prob. 14ECh. R.5 - Prob. 15ECh. R.5 - Prob. 16ECh. R.5 - Prob. 17ECh. R.5 - Prob. 18ECh. R.5 - Prob. 19ECh. R.5 - Prob. 20ECh. R.5 - Prob. 21ECh. R.5 - Prob. 22ECh. R.5 - Prob. 23ECh. R.5 - Prob. 24ECh. R.5 - Prob. 25ECh. R.5 - Prob. 26ECh. R.5 - Prob. 27ECh. R.5 - Prob. 28ECh. R.5 - Prob. 29ECh. R.5 - Prob. 30ECh. R.5 - Prob. 31ECh. R.5 - Prob. 32ECh. R.5 - Prob. 33ECh. R.5 - Prob. 34ECh. R.5 - Prob. 35ECh. R.5 - Solve each inequality. Graph each solution. 3a2 +...Ch. R.5 - Prob. 37ECh. R.5 - Solve each inequality. Graph each solution. p2 ...Ch. R.5 - Prob. 39ECh. R.5 - Prob. 40ECh. R.5 - Prob. 41ECh. R.5 - Prob. 42ECh. R.5 - Solve each inequality. m3m+50Ch. R.5 - Solve each inequality. r+1r10Ch. R.5 - Prob. 45ECh. R.5 - Prob. 46ECh. R.5 - Prob. 47ECh. R.5 - Prob. 48ECh. R.5 - Prob. 49ECh. R.5 - Prob. 50ECh. R.5 - Prob. 51ECh. R.5 - Prob. 52ECh. R.5 - Solve each inequality. z2+zz213Ch. R.5 - Solve each inequality. a2+2aa242Ch. R.6 - Evaluate each expression. Write all answers...Ch. R.6 - Prob. 2ECh. R.6 - Prob. 3ECh. R.6 - Prob. 4ECh. R.6 - Prob. 5ECh. R.6 - Prob. 6ECh. R.6 - Prob. 7ECh. R.6 - Prob. 8ECh. R.6 - Prob. 9ECh. R.6 - Prob. 10ECh. R.6 - Prob. 11ECh. R.6 - Prob. 12ECh. R.6 - Prob. 13ECh. R.6 - Prob. 14ECh. R.6 - Prob. 15ECh. R.6 - Prob. 16ECh. R.6 - Prob. 17ECh. R.6 - Prob. 18ECh. R.6 - Prob. 19ECh. R.6 - Prob. 20ECh. R.6 - Prob. 21ECh. R.6 - Prob. 22ECh. R.6 - Prob. 23ECh. R.6 - Prob. 24ECh. R.6 - Simplify each expression, writing the answer as a...Ch. R.6 - Prob. 26ECh. R.6 - Write each number without exponent. 1211/2Ch. R.6 - Prob. 28ECh. R.6 - Prob. 29ECh. R.6 - Write each number without exponent. -1252/3Ch. R.6 - Prob. 31ECh. R.6 - Prob. 32ECh. R.6 - Prob. 33ECh. R.6 - Prob. 34ECh. R.6 - Prob. 35ECh. R.6 - Prob. 36ECh. R.6 - Simplify each expression. Write all answers with...Ch. R.6 - Prob. 38ECh. R.6 - Prob. 39ECh. R.6 - Prob. 40ECh. R.6 - Prob. 41ECh. R.6 - Prob. 42ECh. R.6 - Prob. 43ECh. R.6 - Prob. 44ECh. R.6 - Prob. 45ECh. R.6 - Prob. 46ECh. R.6 - Prob. 47ECh. R.6 - Prob. 48ECh. R.6 - Prob. 49ECh. R.6 - Prob. 50ECh. R.6 - Prob. 51ECh. R.6 - Prob. 52ECh. R.6 - Prob. 53ECh. R.6 - Factor each expression. 9(6x + 2)1/2 + 3(9x 1)(6x...Ch. R.6 - Prob. 55ECh. R.6 - Prob. 56ECh. R.7 - Simplify each expression by removing as many...Ch. R.7 - Prob. 2ECh. R.7 - Simplify each expression by removing as many...Ch. R.7 - Prob. 4ECh. R.7 - Prob. 5ECh. R.7 - Prob. 6ECh. R.7 - Prob. 7ECh. R.7 - Prob. 8ECh. R.7 - Prob. 9ECh. R.7 - Prob. 10ECh. R.7 - Prob. 11ECh. R.7 - Prob. 12ECh. R.7 - Prob. 13ECh. R.7 - Prob. 14ECh. R.7 - Prob. 15ECh. R.7 - Prob. 16ECh. R.7 - Prob. 17ECh. R.7 - Prob. 18ECh. R.7 - Prob. 19ECh. R.7 - Prob. 20ECh. R.7 - Simplify each expression by removing as many...Ch. R.7 - Prob. 22ECh. R.7 - Prob. 23ECh. R.7 - Prob. 24ECh. R.7 - Prob. 25ECh. R.7 - Prob. 26ECh. R.7 - Prob. 27ECh. R.7 - Prob. 28ECh. R.7 - Prob. 29ECh. R.7 - Rationalize each denominator. Assume that all...Ch. R.7 - Prob. 31ECh. R.7 - Prob. 32ECh. R.7 - Prob. 33ECh. R.7 - Rationalize each denominator. Assume that all...Ch. R.7 - Prob. 35ECh. R.7 - Prob. 36ECh. R.7 - Prob. 37ECh. R.7 - Prob. 38ECh. R.7 - Prob. 39ECh. R.7 - Prob. 40ECh. R.7 - Prob. 41ECh. R.7 - Rationalize each denominator. Assume that all...Ch. R.7 - Prob. 43ECh. R.7 - Prob. 44E
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