Answer:
the answer is 5/8, 65%, 2/3, 0.7
Step-by-step explanation:
5. (1). Determine if the following model is arbitrage free: S(0)=(1,2,10),S(1)=
⎝
⎛
1
1
1
1
12
3
0
0
0
0
0
10
⎠
⎞
If "Yes", find a state price vector; if the answer is "No", find an arbitrage trading strategy θ. (2) If S(0) remains the same but the payoff is changed to S(1)=
⎝
⎛
1
1
1
1
12
3
0
0
0
0
0
20
⎠
⎞
Determine whether the new model is arbitrage free or not. If it is, find a state price vector. Determine whether the new model is complete or not. If so, find the risk neutral probability measure.
(1) The first model is arbitrage-free. The state price vector is λ = (1/5, 7/15, 1/30, 1/3).
(2) The new model is also arbitrage-free. The state price vector remains the same: λ = (1/5, 7/15, 1/30, 1/3). The model is complete, but the risk-neutral probability measure cannot be determined without the risk-free rate.
To determine if a model is arbitrage-free, we need to check if there exists an equivalent martingale measure or state price vector. If such a vector exists, then the model is arbitrage-free; otherwise, it is not.
Let's start by analyzing the first model:
(1) S(0) = (1, 2, 10)
S(1) = ⎝⎛
1 1
12 3
0 0
0 10
⎠⎞
To check for arbitrage, we need to verify if there exists a state price vector, denoted by λ, such that:
S(0) · λ = S(1)
Where · denotes the dot product.
Let's calculate:
(1, 2, 10) · λ = ⎝⎛
1 1
12 3
0 0
0 10
⎠⎞
This equation can be written as a system of equations:
λ₁ + λ₂ + 12λ₃ = 1
λ₁ + 3λ₂ = 2
10λ₁ + 10λ₄ = 10
Solving this system of equations, we find that λ₁ = 1/5, λ₂ = 7/15, λ₃ = 1/30, and λ₄ = 1/3. Thus, a state price vector exists.
Therefore, the first model is arbitrage-free, and the state price vector is λ = (1/5, 7/15, 1/30, 1/3).
Now let's analyze the second model:
(2) S(0) = (1, 2, 10)
S(1) = ⎝⎛
1 1
12 3
0 0
0 20
⎠⎞
Again, we check if there exists a state price vector, λ, such that:
S(0) · λ = S(1)
Calculating:
(1, 2, 10) · λ = ⎝⎛
1 1
12 3
0 0
0 20
⎠⎞
This equation can be written as a system of equations:
λ₁ + λ₂ + 12λ₃ = 1
λ₁ + 3λ₂ = 2
10λ₁ + 20λ₄ = 10
Solving this system of equations, we find that λ₁ = 1/5, λ₂ = 7/15, λ₃ = 1/30, and λ₄ = 1/3. Thus, a state price vector exists.
Therefore, the second model is also arbitrage-free, and the state price vector is λ = (1/5, 7/15, 1/30, 1/3).
Since both models are arbitrage-free and have state price vectors, they are complete. To find the risk-neutral probability measure, denoted by q, we use the formula:
q = λ / (1 + r)
where r is the risk-free rate. As the risk-free rate is not provided in the given information, we cannot determine the exact value of q without this information.
For more questions on state price vector:
https://brainly.com/question/33555793
#SPJ8
what is the answer to 3(x-2) = 6
\(3(x - 2) = 6 \\ x - 2 = \frac{6}{3} \\ x - 2 = 2 \\ x = 2 + 2 \\ x = 4\)
Answer:
Step-by-step explanation:
x =4
Please Help 100 POINTS!!!
Answer:
B
Step-by-step explanation:
Answer:
B. \(\frac{x^2}{3^2} +\frac{y^3}{2^2} =1\)
Step-by-step explanation:
consider a wire 2 ft long cut into two pieces. one piece forms a circle with radius r and the other forms a square with side length x. (a) determine a formula for the radius r in terms of x .
The formula for the radius r in terms of x . and for the maximum areas is x=2/\(\pi\)+4
Given that,
y forms a circle of radius r
y=2\(\pi\)r
r=y/2\(\pi\)
(2-y)- forms Square Side x
(2-y) = 4x
x=(2-y)/4
Now Sum of Area's=Area of Square +Area of Circle
Sum = \(\pi\)r² + x²
Substitute the r and x values in above equation,
A(y)= y²/4\(\pi\)+(y-2)²/ 16
To maximize Area A(y)
A'(y)= 0
2y/4\(\pi\) + 2(y-2)/16 =0
y/2\(\pi\) + (y-2)/8 =0
y = 2\(\pi\)/\(\pi\)+4
Y max will be max, x to be maximum.
for maximum sum of areas,
x=2/\(\pi\)+4
Hence,The formula for the radius r in terms of x . and for the maximum areas is x=2/\(\pi\)+4
Learn more about Area :
brainly.com/question/28642423
#SPJ4
15. Barney likes 27 but not 25; he likes 216 but not 220; he likes 343 but not 345. Which does he like:
Hence according to the given pattern next number will be 1000.
A cube is a solid three-dimensional shape with six square faces, eight vertices, and twelve edges that is used in mathematics or geometry. Also said to be a conventional hexahedron. You must be familiar with the three-by-three Rubik's cube, which is the most prevalent real-world example and is useful for boosting cognitive function. Similar to this, there are several examples in everyday life, such as six-sided dice, etc. Three-dimensional structures and figures with surface areas and volumes are the focus of solid geometry.
The pattern or sequence in the provided series of numbers is known as the number pattern. The common relationship between the provided collection of numbers is revealed by the number pattern. A number pattern is a regular pattern of numbers that repeats itself.
3x3x3= 27
6x6x6= 216
7x7x7= 343
10x10x10= 1000
Hence The complete question is-
Barney likes 27 but not 25; he likes 216 but not 220; he likes 343 but not 345. Which does he like: 16, 81, 127, 1000, or 1021?
learn more about cube,
https://brainly.com/question/28134860
#SPJ4
let f(x) = x3 2x2 7x − 11 and g(x) = 3f(x). which of the following describes g as a function of f and gives the correct rule?
The correct rule to describe the function g as a function of f and gives the correct rule is that g(x) = 3x³-6x²+21x-33.
This function is obtained by multiplying the function f(x) by a constant, which in this case is 3.
The correct rule to describe the function
g(x) = 3f(x)
in terms of the function f(x) = x³-2x²+7x-11 is that
g(x) = 3(x³-2x²+7x-11) and thus
g(x) = 3x³-6x²+21x-33.
In order to obtain the function g(x) from the given function f(x), it is necessary to multiply it by a constant, in this case 3.
Therefore, g(x) = 3f(x) means that g(x) is three times f(x).
Thus, we can obtain g(x) as follows:
g(x) = 3f(x) = 3(x³-2x²+7x-11) = 3x³-6x²+21x-33
Therefore, the correct rule to describe the function g as a function of f and gives the correct rule is that
g(x) = 3x³-6x²+21x-33.
This function is obtained by multiplying the function f(x) by a constant, which in this case is 3.
To know more about function visit:
https://brainly.com/question/30721594
#SPJ11
Identify two non-planetary objects in the solar system. How are they similar or different?
Two non-planetary objects in the solar system are asteroids and comets.
What are the non-planetary abjects?
Asteroids are rocky objects that orbit the sun, primarily located in the asteroid belt between Mars and Jupiter. They can range in size from small pebbles to large objects over 500 km in diameter. Asteroids are believed to be remnants from the early solar system, and studying them can provide insights into the formation and evolution of the planets.
Comets are icy objects that originate from the Kuiper belt or the Oort cloud, which are located far beyond the orbit of Neptune. They have a distinct coma (a fuzzy atmosphere) and a tail that can extend for millions of kilometers as they approach the sun. Comets are believed to be remnants from the early solar system and contain information about the formation of the outer planets and the early solar system.
While both asteroids and comets are remnants from the early solar system, they differ in composition and behavior. Asteroids are primarily composed of rock and metal, while comets are made up of ice, dust, and rocky material. Comets also have highly elliptical orbits that can take them far from the sun, while asteroids have more circular orbits.
To know more about Asteroids, visit:
https://brainly.com/question/19161842
#SPJ1
Complete question is: Two non-planetary objects in the solar system are asteroids and comets and they differ in composition and behavior.
A rectangle has a length of 3 meters and a width of 50 centimeters. What is the perimeter of the rectangle in centimeters?
Answer: 7 meters
Step-by-step explanation:
1 meter = 100 centimeters.
Perimeter = Length + Length + Width + Width.
Perimeter = 3 + 3 + 0.5 + 0.5
Perimeter = 7 meters
Hope this helped!
a measurable part of a line that consists of two points, called endpoints, and all of the points between them are
A measurable part of a line that consists of two points, called endpoints, and all of the points between them are called Line sigments.
Geometry is a branch of mathematics that deals with how objects can be expressed as relationships of points, lines, planes, surfaces, and dimensions. When we draw lines in geometry, we use an arrow at each end to show that it expands infinitely. A line is a path between two points that can be measured. Since line segments have a defined length, they can form the sides of any polygon. The figure below shows the line AB, where the length of the line AB is related to the distance between its endpoints, A and B. The symbol for the line is named after its two endpoints, e.g.
\( \bar{AB}\)
To learn more about line segment, refer:
https://brainly.com/question/28962970
#SPJ4
Ayuda las necesito para mañana y no le entiendo
Supplementary angles are important in mathematics because they have a sum of 180 degrees.
This property is used in various geometric constructions and proofs, as well as in solving real-world problems involving angles. For example, in trigonometry, the concept of supplementary angles is used to determine the values of trigonometric functions for angles greater than 90 degrees.
Learn more about Angles:
https://brainly.com/question/16307055
#SPJ1
8/6 + (-9/5) simplest answer
Answer:
-7/15
Step-by-step explanation:
-3$8(47#+$'++#$)3!_+$7$jrjdjd
Answer:
- 7/15
Step-by-step explanation:
Must convert to a common denominator to add or subtract fractions
I'll use 30
8/6 = 40/30
-9/5 = -54/30
(40-54) /30 = -14/30 = - 7/15
Find the angles a,b,c and d
a=180-79=101
c=180-83=97
a+c+d+b=360
101+97+2x=360
198+2x=360
2x=360-198=162
X=162/2=81
a=101
b=97
b and d=81
Jose bought a new car 2 years ago for $18,000. The value of his car decreased exponentially by 17% and is now
valued at about $12,400.
Solve Part A please
Answer: D
Step-by-step explanation: On the first part, if it decreases by 17% each year, that means its value is 83% of what it was. You forgot to say that the car was bought 2 years ago.
Thus, the answer is D
For the second, just use the same logic to get 18000*0.75^4
Find the missing number:
√25 x √25 = 25 x?
(A) 1
(B) 5
(C) 10
(D) 25
Step-by-step explanation:
since sqrt(25)×sqrt(25) = 25, then x can be any number, because x = x in all cases. and then both sides of the equation are always equal, no matter what value we give x, as long as x is a factor in both sides.
sqrt(25)×x×sqrt(25) = 25x
is always true for every x.
if the question would be
sqrt(25)×x×sqrt(25) = 25
then the answer can only be x = 1. because for every other value of x the equality is destroyed.
Solve.
x2 + 5x - 2 =0
The quadratic equation x² + 5x - 2 = 0 have the solutions approximately x = 0.38 and x = -5.38.
Solutions of a quadratic equationQuadratic equations has it highest power to the degree of two and they have two solutions that makes them true.
To solve this quadratic equation: x² + 5x - 2 = 0, we can use the quadratic formula:
x = (-b ± sqrt(b² - 4ac)) / 2a
where a, b, and c are the coefficients of the quadratic equation.
Hence a = 1, b = 5, and c = -2 and substituting these values into the quadratic formula, we get:
x = (-5 ± sqrt(5² - 4(1)(-2))) / 2(1) x = (-5 ± sqrt(33)) / 2
So the solutions are:
x = (-5 + sqrt(33)) / 2 ≈ 0.38
x = (-5 - sqrt(33)) / 2 ≈ -5.38
Therefore, the quadratic equation x² + 5x - 2 = 0 have the solutions approximately x = 0.38 and x = -5.38.
Know more about quadratic equation here:https://brainly.com/question/28038123
#SPJ1
Which theorem can you use to show that the quadrilateral on the tile floor is a parallelogram?
4
-Parallelogram Opposite Sides Converse
-Parallelogram Opposite Angles Converse
-Opposite Sides Parallel and Congruent Theorem
-Parallelogram Diagonals Converse
Answer: Parallelogram Opposite Sides Converse
Step-by-step explanation:
There are 2 pairs of opposite congruent sides.
40 POINTS
How is volume measured?
base units
cubic units
square units
units
Alberto started out bench pressing 60 pounds. He then added 5 pounds every week. Determine whether the situation is linear or nonlinear, and proportional or nonproportional
Answer
linear
nonproportional
Step-by-step explanation:
Since for each equal change in time (1 week), there is an equal change in weight (5 lb), the situation is linear.
At time zero, the first week, the weight was not zero. It was 60 lb, so it is not proportional.
Answer:
linear
nonproportional
Which of the following correlation coefficients represents the strongest relationship between two variables? -.75 +.60 .00 +.30
The correlation coefficient that represents the strongest relationship between two variables is -0.75.
In correlation coefficients, the absolute value indicates the strength of the relationship between variables. The strength of the association increases with the absolute value's proximity to 1.
The maximum absolute value in this instance is -0.75, which denotes a significant negative correlation. The relevance of the reverse correlation value of -0.75 is demonstrated by the noteworthy unfavorable correlation between the two variables.
To know more about correlation coefficients, visit,
https://brainly.com/question/4219149
#SPJ4
Below are the first several terms in a sequence. 0.4, 2, 10, 50, .. Part A Write a formula for the nth term of the sequence. Be sure to specify a starting value of n.
Answer:
aₙ = 0.4*5ⁿ⁻¹Step-by-step explanation:
Given sequence:
0.4, 2, 10, 50, ...The first term is:
a₁ = 0.4The common ratio is:
r = 50/10 = 10/2 = 2/0.4 = 5The formula for the nth term is:
aₙ = a₁rⁿ⁻¹aₙ = 0.4*5ⁿ⁻¹Your restaurant bill is $72.34. You want to leave a 20% tip. Which is the best estimate of a 20% tip
Answer:
Step-by-step explanation:
72.34 x .2
the tip would be $14.47
Answer:
Your restaurant bill is $72.34. You want to leave about a 20% tip. Which is the best estimate of a 20% tip?A. $14.00B. $14.40C. $14.60D. $14.70
Step-by-step explanation:B is the right answer. You have to multiply 72.34 by 0.2 and you get 14.468. So B is the closest.
Simplify (evaluate):
3-3
Answer:
Its 0
Step-by-step explanation:
Hope this helps!
The point () T T 9, 3'2 in the spherical coordinate system represents the point (3:50) 9, in the cylindrical coordinate system. Select one: True O False
The statement "The point (9, 3π/2) in the spherical coordinate system represents the point (3, 50) in the cylindrical coordinate system" is False.
In the spherical coordinate system, a point is represented by three coordinates: (ρ, θ, φ), where ρ represents the distance from the origin, θ represents the angle in the xy-plane, and φ represents the angle from the positive z-axis. In the cylindrical coordinate system, a point is represented by three coordinates: (ρ, θ, z), where ρ represents the distance from the z-axis, θ represents the angle in the xy-plane, and z represents the height.
The given points, (9, 3π/2) in the spherical coordinate system and (3, 50) in the cylindrical coordinate system, have different values for the distance coordinate (ρ) and the angle coordinate (θ). Therefore, the statement is false as the two points do not correspond to each other in the different coordinate systems.
Learn more about coordinate system here: brainly.com/question/4726772
#SPJ11
????????????? Answers
Answer:
C
Step-by-step explanation:
A slice is cut from a circular pizza with a diameter of 18 inches. The arc length, or curved edge of the pizza, that was cut measures 6.5 inches. What is the measure of the central angle that was used when cutting the pizza to the nearest tenth?
A- 0.4 radians
B-0.7 radians
C- 1.4 radians D- 2.8 radians
The measure of the central angle that was used when cutting the pizza to the nearest tenth is 0.7 radians.
We are given that
Diameter of pizza =d=18 inches,
The distance across a circle through the center is called the diameter. The distance from the center of a circle to any point on the boundary is called the radius. The radius is half of the diameter: 2r=dhence radius of circular pizza =r\(=\frac{\mathrm{d}}{2}=\frac{18}{2}=9$\) inches,
Also, the arc length of a slice of pizza =L=6.5 inches.
Since we know that
As per central angle definition in geometry, it is the angle subtended by the arc of the circle at the center of the circle. The two radii make the arms of the angle. Central angle helps to know the proportion of the curve with respect to the circle.Central angle \($(\theta)=\frac{\text { Arc length }}{\text { Radius of circle }}=\frac{\mathrm{L}}{\mathrm{r}}$\)Equation 1 where \($\theta$\) is measured in radians.
Put the values of L and r in equation1, Central angle \($(\theta)=\frac{\mathrm{L}}{\mathrm{r}}$\)\(& =\frac{6.5}{9} \\\)
\(& =\frac{65}{90} \\\)
\(& =\frac{13 \times 5}{18 \times 5} \\\)
\(& =\frac{13}{18} \\\)
\(& =0.7 \text { radians }\end{aligned}\)
Therefore, the measure of the central angle to the nearest tenth is 0.7 radians.
For more such questions on central angle
https://brainly.com/question/10945528
#SPJ4
26. This week 6 different students paid $2.00 each in fines to the school librarian. The librarian also received a $60.00 donation from a local business. She spent $37.50 to buy books and supplies. Write an expression that shows the amount of money the librarian has at the end of the week. DO NOT SOLVE. YOU SHOULD NOT HAVE AN EQUAL SIGN.
Answer:
2x + 60 - 37.50
x = 6
Answer quickly IF u love god i do please
Answer:
The answer is 11
Step-by-step explanation:
The answer is 11 because you need to add the sides up that the points are on point P is 5 Point Q is 3 and point R is 3 5+3 is 8 8+3 is 11
Answer:
19.56
Step-by-step explanation:
PR = \(\sqrt{3^{2} + 3^{2} }\) = \(\sqrt{18}\) = 3\(\sqrt{2}\)
RQ = \(\sqrt{5^{2} +5^{2} }\) = \(\sqrt{50}\) = 5\(\sqrt{2}\)
QP = \(\sqrt{8^{2} +2^{2} }\) = \(\sqrt{68}\) = 2\(\sqrt{17}\)
Perimeter = sum of the sides = 3\(\sqrt{2}\) + 5\(\sqrt{2}\) + 2\(\sqrt{17}\) = 19.56
Break the triangle PQR into 3 right triangles, with each leg being a hypotenuse. Then you can use the Pythagorean theorem to find the length of each leg. Add them all together to get the perimeter.
Urgent please help..
what does g stand for in math?
Answer:
g stands for a measure of mass that is approximately equal to the weight of paper clip, penny, or nickel. note: this is not a fake one this is real and I have done my research
solve for x 5(x+1)=4(x+8)
Answer:
x=27
Step-by-step explanation:
expanding the above expression we get
5x+5=4x+32
grouping numbers with coefficient of x at the left side and constant at the right side we get
5x-4x=32-5
x=27