Answer:
Picture please?
Step-by-step explanation:
Assume a security follows a geometric Brownian motion with volatility parameter sigma=0.2. Assume the initial price of the security is $25 and the interest rate is 0. It is known that the price of a down-and-in barrier option and a down-and-out barrier option with strike price $22 and expiration 30 days have equal risk-neutral prices. Compute this common risk-neutral price.
The common risk-neutral price for both the down-and-in barrier option and the down-and-out barrier option is approximately $1.7036.
The risk-neutral price of both options can be determined by using the formula for European call options, adjusted for the barrier feature. Here's how we can calculate the common risk-neutral price:
1. Define the variables:
S = Initial price of the security = $25
K = Strike price of the options = $22
T = Time to expiration = 30 days (assuming 252 trading days in a year)
r = Risk-free interest rate = 0
σ = Volatility parameter = 0.2
2. Calculate the risk-neutral drift (μ):
The risk-neutral drift, μ, is calculated as (r - σ^2/2). Since r is 0, we have:
\(μ = -σ^2/2 = -0.2^2/2 = -0.02\)
3. Calculate the risk-neutral probability of hitting the barrier (p):
The risk-neutral probability, p, is calculated using the formula:
p = exp(-2μ√T)
Substituting the values, we get:
p = exp(-2*(-0.02)*√(30/252)) ≈ 0.9705
4. Calculate the common risk-neutral price:
To calculate the risk-neutral price, we need to consider both the down-and-in and down-and-out options.
The risk-neutral price of the down-and-in option is given by:
Price_DI = S * N(d1) - K * exp(-rT) * N(d2)
The risk-neutral price of the down-and-out option is given by:
Price_DO = Price_DI - (p^(T/252))
We need to calculate the values of d1 and d2, which are defined as follows:
d1 =\((ln(S/K) + (r + σ^2/2)T) / (σ√T)\)
d2 = d1 - σ√T
5. Calculate d1 and d2:
d1 = \((ln(S/K) + (r + σ^2/2)T) / (σ√T)\)
= (ln(25/22) + (0 + 0.2^2/2)*(30/252)) / (0.2√(30/252))
≈ 0.3162
d2 = d1 - σ√T
≈ 0.3162 - 0.2√(30/252)
≈ 0.1933
6. Calculate the common risk-neutral price:
Price_DI = S * N(d1) - K * exp(-rT) * N(d2)
Price_DO = Price_DI - (p^(T/252))
Using the Black-Scholes formula, we can calculate the common risk-neutral price:
Price_DO = 25 * N(0.3162) - 22 * exp(0) * N(0.1933) - (0.9705^(30/252))
≈ 5.1722 - 2.5027 - 0.9659
≈ 1.7036
Therefore, the common risk-neutral price for both the down-and-in barrier option and the down-and-out barrier option is approximately $1.7036.
Learn more about probability here:
https://brainly.com/question/31828911
#SPJ11
help asap, ill give
The greatest number of bags Caesar can make is 16 bags. Each of these bags will have 5 boxes of pasta and 8 jars of sauce.
If Caesar made fewer bags, he would have boxes of pasta and jars of sauce remaining.He could use 8 bags but this is not the greatest number he could use.What is the number of pasta and sauce in each bag?Boxes of pasta = 32Jars of sauce = 48Find the greatest common factor of 32 and 48
32 = 1, 2, 4, 8, 16, 3248 = 1, 2, 3, 4, 6, 8, 12, 16, 24 and 48.The greatest common factor of 32 and 48 is 16
So, the greatest number of bags Caesar can make is 16 bags
Number of pasta in each bag = 32/16
= 5 boxes of pasta per bag
Number of sauce in each bag = 48/16
= 8 jars of sauce per bag
If Caesar made fewer bags, he would have boxes of pasta and jars of sauce remaining.
He could use 8 bags but this is not the greatest number he could use.
Therefore, Caesar can use the greatest common factor to determine the highest number of bags he could use.
Read more on the greatest common factor:
https://brainly.com/question/219464
#SPJ1
can someone help me with this?
Answer:
Step-by-step explanation:
If you write 1 instead of y, x would be 5/8 so ratio is 1/5:8=8/5
Find the value of y.
Answer:
y = -1
Step-by-step explanation:
It´s an equilateral triangle
then:
2y + 6 = 4
2y = 4 - 6
2y = -2
y = -2/2
y = -1
Check:
2*-1 + 6 = 4
-2 + 6 = 4
I will give brainliest who ever answers fastest what is 1+1=?
Answer:
2
Step-by-step explanation:
Like and give 5 star rating
Which statements regarding the vertex of a quadratic function are true? Select all that apply.
Answer:
the rules regarding the vertex of a quadratic function are:
the parabola opens up, the vertex represents the lowest point on the graph, or the minimum value of the quadratic function. If the parabola opens down, the vertex represents the highest point on the graph, or the maximum value. In either case, the vertex is a turning point on the graph.
Hope This Helps!!!
please help! i’ll give brainliest!
Answer:
x = 1 y = 6
Step-by-step explanation:
x + 2y = 13
-x + y = 5
3y = 18
y = 6
-x + 6 = 5
-x = -1
x = 1
The battery life of a fully charged cell phone is normally distributed, with a mean of 14 hours and a standard deviation of 2 hours. What is the probability that a randomly selected cell phone will have a battery life of at least 8 hours
Answer:
.0013
Step-by-step explanation:
8 hours is 3 standard deviations BELOW the mean z-score = -3
from z scor table , tis corresponds to .0013
Big Bob is currently 18 years old and weighs 205lbs. Every year he plans on gaining 8lbs. Using the expression from the previous problem (250+ 8y) how much will he weigh when he is 24 years old?
Answer:he will weigh 298lbs when he is 24 years old
Step-by-step explanation:
24-18=6 so y =6 plug this into problem (250 +(8x6))
8x6=48 (250=48)=298
Short answer please ASAP
The lateral surface area of the rectangular prism given in the picture is 36 cm ²
How to find the lateral surface area of a rectangular prism ?The lateral surface area of a rectangular prism can be found by the formula :
= 2 x height x ( Length + Breadth )
Height = 2 cm
Length = 3 cm
Breadth = 6 cm
The lateral surface area is therefore:
= 2 x 2 x ( 3 + 6 )
= 4 x 9
= 36 cm ²
In conclusion, the lateral surface area is 36 cm ².
Find out more on lateral surface area at https://brainly.com/question/14642720
#SPJ1
1/1
3. Maria's dinner bill is $13.53 after tax. If she wants to leave a 15% tip.
what will the total cost of the dinner be?
Answer:
$15.56
Step-by-step explanation:
So start by doing a 10% tip, because you just move the decimal place over by 1, so $1.35, and then divide that by 2 to get 5% which is .68, and add them to get 2.03. You can get the same answer by multiplying 0.15 to 13.53. 13.53 + 2.03 is 15.56. Hope this helped and have an awesome day!
Use logarithmic differentiation to find the derivative of the function. y=(ln(x+4)) x
the derivative of the function y = (ln(x + 4))x using logarithmic differentiation is given by y' = (ln(x + 4))x * [ln(ln(x + 4)) + (1/ln(x + 4)) * (1/(x + 4))].
To find the derivative of the function y = (ln(x + 4))x using logarithmic differentiation, we can follow these steps:
Step 1: Take the natural logarithm of both sides of the equation:
ln(y) = ln((ln(x + 4))x)
Step 2: Use the logarithmic property ln(a^b) = b ln(a) to simplify the right-hand side of the equation:
ln(y) = x ln(ln(x + 4))
Step 3: Differentiate both sides of the equation implicitly with respect to x:
(1/y) * y' = ln(ln(x + 4)) + x * (1/ln(x + 4)) * (1/(x + 4))
Step 4: Simplify the expression on the right-hand side:
y' = y * [ln(ln(x + 4)) + (1/ln(x + 4)) * (1/(x + 4))]
Step 5: Substitute the original expression of y = (ln(x + 4))x back into the equation:
y' = (ln(x + 4))x * [ln(ln(x + 4)) + (1/ln(x + 4)) * (1/(x + 4))]
Therefore, the derivative of the function y = (ln(x + 4))x using logarithmic differentiation is given by y' = (ln(x + 4))x * [ln(ln(x + 4)) + (1/ln(x + 4)) * (1/(x + 4))].
To know more about Equation related question visit:
https://brainly.com/question/29538993
#SPJ11
Arwen rolls a number cube (with sides labeled 1 through 6) twice. What is the
probability that the first or second result is the number 5?
The answer is 11/36.
Just how??
in a maths class,the girl to boy ratio is 7:5 if there are 20 boys,how many girls are there?
Answer:
28:20
Step-by-step explanation:
you just multiply 5 by 4 because 20 divided by 4 is 5 and then multiply 7 by 4
Answer:
Let total students be ‘X’
No of girls = (X-20)
Girls/Boys=7/5=(X-20)/20
7(20) =5(X-20)
140=5X-100
5X=240
X = 240/5
X =48
So, Total Students are 48
No of girls = (X-20) = 48-20 = 28
Step-by-step explanation:
Sharon went to the mall and purchased 4 pairs of jeans for $24.99 each, 1 pair of gym shoes for $125.57 and lunch for 15.93 the tax on all of the items that she purchased was 6%. How much did she spend at the mall?
Answer:
$226.97
Step-by-step explanation:
$24.99 x 4 = $99.96
$99.96 + $125.57 = $225.53
$225.53 + $15.93 = $241.46
$241.46 - 6% = $226.97
what are the slope rules?
please write them so i can write them in my notes
many thanks <3
Answer:
y=mx+b
mx = slope
b= y intercept
Step-by-step explanation:
Answer:
y = mx + b
slope- rise/run
Step-by-step explanation:
Find the missing length of the triangle. 6.5 mm 2.5 mm b The missing length is millimeters.
In order to determine the value of the missing length b, use the Pithagorean theorem, given by:
h² = a² + b²
where:
h = 6.5 mm
a = 2.5 mm
solve the previous equation for b, as follow:
b = √(h² - a²)
b = √(6.5² - 2.5²)mm
b = √36 mm
b = 6 mm
Hence, the value of the missing length is 6 mm
hi! please help in math!
i need the solution/explanation on how you got the answer
(y + 3) = -8(x - 4)
what is the slope?
Answer:
slope m = - 8
Step-by-step explanation:
the equation of a line in point- slope form is
y - b = m(x - a)
where m is the slope and (a, b ) a point on the line
y + 3 = - 8(x - 4) ← is in point- slope form
with slope m = - 8
The slope is :
↬ -8Solution:
Given: \(\bf{y+3=-8(x-4)}\)
To determine the slope, it's important to know the form of the equation first.
There are 3 forms that you should be familiar with.
The three forms of equations of a straight line are:
Slope Intercept (y = mx + b)Point slope (y-y₁) = m(x - x₁)Standard form (ax + by = c)This equation matches point slope perfectly.
The question becomes, how do you work with point slope to find slope?
Point slopeIn point slope, m is the slope and (x₁, y₁) is a point on the line.
Similarly, the slope of \(\bf{y+3=-8(x-4)}\) is -8.
Hence, the slope is -8.Which number line shows the solution to 11x + 14 < –8?
Answer:
D
Step-by-step explanation:
The line with points greater than +2 are the solution to the given inequality.
What is inequality? Differentiate between equation and expression?inequality : An inequality is used to make unequal comparisons between two expressions or numbers.
expression : A mathematical expression is made up of terms (constants and variables) separated by mathematical operators.
equation : A mathematical equation is used to equate two expressions.
Given is the inequality -
11x + 14 < - 8
The given inequality is -
11x + 14 < - 8
11x < - 8 - 14
11x < - 22
x < - 2
x > 2
Therefore, the line with points greater than +2 are the solution to the given inequality.
To solve more questions on inequality, visit the link below -
brainly.com/question/14610360
#SPJ2
you and your friends go to joshua tree national park on december 13 to watch the peak of the geminid meteor shower. according to the griffith observatory website, the expected number of meteors you will see is 150150 per hour. what is the probability that you will see at least two meteors in the first minute?
The probability that we will see at least two meteors in the first minute is 1251.5.
What is probability?The probability is the likelihood that something will happen, to put it simply. When we don't know how something will turn out, we can talk about the possibility of one outcome or the likelihood of several. The study of events that fit into a probability distribution is known as statistics. Probability is a branch of mathematics that deals with numerical representations of the likelihood of an event occurring or of a proposition being true.So, the probability that we will see at least 2 meteors in the first minute:
The expected start we can see in 1 hour is 150150.Then, in 1 minute:
150150/60 = 2,502.5Rounding off: 2,503Now, at least 2 meteors in 1 minute:
Probability formula: P(E) = Favourable events/Total eventsSolve as follows:
P(E) = Favourable events/Total eventsP(E) =2/2,503P(E) = 7.99P(E) = 1251.5Therefore, there is a 1251.5 percent probability that we will observe two meteors or more in the first minute.
Know more about probability here:
https://brainly.com/question/28924396
#SPJ13
Find the equation of the line that
is perpendicular to y = 4x + 5 and
contains the point (8,-4).
The equation of the line that is perpendicular to y = 4x + 5, in slope-intercept form is: y = -1/4x - 2.
What is the Equation of Perpendicular Lines?Lines that are perpendicular to each other have slope that are negative reciprocal to each other.
Slope of y = 4x + 5 is 4.
Negative reciprocal of 4 is -1/4.
Substitute m = -1/4 and (a, b) = (8, -4) into y - b = m(x - a):
y - (-4) = -1/4(x - 8)
y + 4 = -1/4x + 2
y = -1/4x + 2 - 4
y = -1/4x - 2
Equation of the perpendicular line is: y = -1/4x - 2.
Learn more about equation of perpendicular lines on:
https://brainly.com/question/7098341
Can someone pls help me with this
Answer:
were is the qn?
Step-by-step explanation:
in a survey of patients in a local hospital, 62.42% of the respondents indicated that the health care providers needed to spend more time with each patient. who makes up the population? a. hospital patients b. all survey respondents c. all patients in a local hospital d. cannot be determined from the information given.
The option (c) all patients in a local hospital makes up the population
Surveys are a commonly used method for collecting data in various fields, including healthcare. They can provide valuable insights into patients' experiences, opinions, and preferences, which can help healthcare providers improve their services.
In this case, the survey was conducted among patients in a local hospital, and the results showed that 62.42% of the respondents believed that healthcare providers needed to spend more time with each patient.
The answer is not immediately obvious, but we can make some inferences based on the information given. However, we cannot generalize the results to all patients in the area or the entire population.
Third, surveys cannot account for all the factors that may influence the results, such as demographic characteristics, health status, or cultural background.
Therefore, we can conclude that the population under study is "patients in a local hospital" who participated in the survey.
To know more about survey here.
https://brainly.com/question/13532910
#SPJ4
The cost of 6 sandwiches and 4 drinks is $36. The cost of 4 sandwiches and 6 drinks is $34. how much does one sandwich cost?
Answer: $4/sandwich
midpoint of AB with A(-3, 5) and B(1, 7).
Answer:
(- 1, 6 )
Step-by-step explanation:
Given endpoints (x₁, y₁ ) and (x₂, y₂ ) then the midpoint is
[ \(\frac{1}{2}\) (x₁ + x₂ ), \(\frac{1}{2}\) (y₁ + y₂ ) ]
Here (x₁, y₁ ) = A(- 3, 5) and (x₂, y₂ ) = B(1, 7) , thus
midpoint = [ \(\frac{1}{2}\) (- 3 + 1 ), \(\frac{1}{2}\) (5 + 7) ] = (- 1, 6 )
Find the critical points for the function f(x,y)=x2−2xy+2y2−2y and classify each as a local maximum, local minimum, saddle point, or none of these.
The critical points for the function is (1, 1) which is also the a saddle point.
To find the critical points of the function, we need to find where its partial derivatives are equal to zero:
∂f/∂x = 2x - 2y = 0
∂f/∂y = -2x + 4y - 2 = 0
From the first equation, we get x = y. Substituting this into the second equation, we get -2x + 4x - 2 = 0, which simplifies to 2x = 2 and thus x = 1. Since x = y, we have y = 1 as well. Therefore, the only critical point of the function is (1, 1).
To classify this critical point, we need to examine the second partial derivatives of the function:
∂2f/∂x2 = 2
∂2f/∂y2 = 4
∂2f/∂x∂y = -2
At the critical point (1, 1), we have:
∂2f/∂x2 = 2 > 0
∂2f/∂y2 = 4 > 0
∂2f/∂x∂y = -2 < 0
Since the second partial derivative test tells us that ∂2f/∂x2 > 0 and (∂2f/∂x2)(∂2f/∂y2) - (∂2f/∂x∂y)2 > 0, we can conclude that the critical point (1, 1) is a saddle point.
Learn more about critical point here
brainly.com/question/29159018
#SPJ11
39) Natural numbers that have 1 as the common number between them are called?
Answer:
I think they're called The Prime numbers.
Tell me if it's correct
Answer:
odd numbers
1,3,5,7,9,11.......
Step-by-step explanation:
If you select 25 in the top values list, access displays _____ in the query results.
If you select 25 in the Top Values list, Access displays the top 25 records in the query results.
How to find Access Query Results?Queries are excellent tools in Microsoft Excel to show information from related tables in a single result set, as the results that you pull from queries aren’t limited to a single table.
The way to create a simple query using the wizard is as follows;
Click the “Query Wizard” button in the “Queries” group on the “Create” tab in the Ribbon. In the “New Query” dialog box that appears, you can see the ways in which you can create queries. Select the “Simple Query Wizard” choice.Click “OK” to begin.Now, If you select 25 in the top values list, access displays the top 25 records in the query results.
Read more about Access Query Results at; https://brainly.com/question/25266819
#SPJ1
The ratio of boys to girls at King Middle School is 3: 2. What is the ratio of girls to all students?
Answer:
2 : 5Step-by-step explanation:
The ratio of boys to girls is 3: 2:
Number of boys = 3xNumber of girls = 2xTotal number of students:
3x + 2x = 5xThe ratio of girls to all students:
2x : 5x = 2 : 5Total students in ratio =3+2=5
Girls =2Girls: students
2/52:53.once we moved from the 5-kingdom scheme to the 3-domain scheme, which two kingdom names were completely eliminated?
The three domains are the Archaea, the Bacteria, and the Eukary.
What is 5 kingdom scheme?R.H. Whittaker proposed the five kingdom division in 1969. Based on traits including cell structure, manner of nutrition, source of nutrition, and body organization, the five kingdoms were created. The Kingdoms Monera, Protista, Fungi, Plantae, and Animalia are all included in it. Depending on factors like cell structure, mode of nutrition, mode of reproduction, and body organization, living things are categorized into five different kingdoms: Protista, Fungi, Plantae, Animalia, and Monera.The conclusions have since become accepted, leading to replacement of the kingdom Monera with the two domains Bacteria and Archaea.learn more about kingdom scheme click here:
https://brainly.com/question/1413097
#SPJ4