What is the simplest form of this expression: log2(165/2)
Consider a binomial lattice where a security price S moves up by a factor u with probability p, or down by a factor d with probability 1 - p. If we set d > 1/u then which of the following will be TRUE?
Consider two securities X and Y with the following 5 annual returns:
X: +10%, +3%, -2%, +3%, +5%
Y: +7%, -2%, +3%, -5%, +10%
In this case the sample covariance between the two time series can be calculated as:
A 2-step binomial tree is used to value an American put option with strike 105, given that the underlying price is currently 100. At each step the underlying price can move up by 10 or down by 10 and the risk-neutral probability of an up move is 0.6. There are no dividends paid on the underlying and the continuously compounded risk free interest rate over each time step is 1%. What is the value of the option in this model?
What is the maximum value for f(x)= 8-(x+3)(x-3)?
What is the angle between the following two three dimensional vectors: a=(1,2,3), b=(-4,2,0)?
A typical leptokurtotic distribution can be described as a distribution that is relative to a normal distribution
A 2-step binomial tree is used to value an American put option with strike 104, given that the underlying price is currently 100. At each step the underlying price can move up by 20% or down by 20% and the risk-neutral probability of an up move is 0.55. There are no dividends paid on the underlying and the discretely compounded risk free interest rate over each time step is 2%. What is the value of the option in this model?
What is the 40th term in the following series: 4, 14, 30, 52, …?
When a number is written with a fraction as an exponent, such as , which of the following is the correct computation?
