Answer:
Brownian Motion- The usual model for the time-evolution of an asset price S(t) is given by the geometric Brownian motion.
Now the geometric Brownian motion is represented by the following stochastic differential equation:
- Note- <em>coefficients μ representing the drift and σ,volatility of the asset, respectively, are both constant in this model.</em>
To solve the problem now we have the been Data provided:
μ= 0.12,
σ=0.24,
Step-by-step explanation:
<u>Step A:</u>
we have, the variables of Black Scholes Model, by putting the values of variables available, we get:
- S = Current stock price = 40
,
Next is, "r" the risk free rate,
- risk free rate, r = mu = 0.12
,
- time to maturity, T, as we have;
- T= 4 months = 4/12.
- T = 1/3 year(360 days)
<u>Step B:</u>
We now need to calculate the parameter d₂ of the Black Scholes Model. .
- The probability which we want is 1 - N(-d₂),
<u>Step C:</u>
As step C is done on excel for further calculations so, do use it if you are solving it on computer.
Answer:
11
Step-by-step explanation:
Given:
A collection of 8 backpacks has a mean weight of 14 pounds
A different collection of 12 backpacks has a mean weight of 9 pounds
Question asked:
What is the mean weight of the 20 backpacks ?
Solution:
For first collection of backpacks.
As we know:
For Second collection of backpacks.
Now, we will find the mean weight of the 20 backpacks altogether.
<u>Mean weight of the 20 backpacks = Total sum of observations divided by total number of observations</u>
Combined Mean =
=
Therefore, the mean weight of the 20 backpacks is 11.
Answer:
Marci is the faster runner.
Step-by-step explanation:
Sandi can run 348 cm in a second. Let's find out how many cm she can run in a minute: in a minute there are 60 seconds. So lets multiply 348cm times 60, this gives you 20,880. That is how much she travels in a minute, now let's find out how much she runs in an hour: if she runs 20,880 cm in an minute and there are 60 minutes in an hour, then all you have to do is multiply 20,880 times 60, this gives you 1,252,800. That is how many cm she runs in an hour. Now let's change from cm to miles. There are 160,934 cm in a mile. If we divide 1,252,800 by 160,934 this will give you
Answer:
The answer is 30
Step-by-step explanation:
both of the square roots cancel out
Answer:
The balance of Lea's account after 12 years of investment will be $ 21,694.04.
Step-by-step explanation:
To calculate the compound interest generated by Lea's account, which has an annual interest of 8% compounded monthly, and whose investment will last for a period of 12 years, the following calculation must be performed:
X = 8,333 x (1 + 0.08 / 12) ^ 8x12
X = 21,694.04
Thus, the balance of Lea's account after 12 years of investment will be $ 21,694.04.