Explain Black–Scholes model
Explain Black–Scholes model.
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The Black-Scholes model is depends on geometric Brownian motion for asset price S as
dS = µSdt + σSdX.
The Black-Scholes partial differential equation for value V of an alternative is then
∂V/∂t + ½ σ2S2 (∂2V/∂S2) + rS (∂V/∂S) - rV = 0
Prove the law of iterated expectations for continuous random variables. 2. Prove that the bounds in Chebyshev's theorem cannot be improved upon. I.e., provide a distribution that satisfies the bounds exactly for k ≥1, show that it satisfies the bounds exactly, and draw its PDF. T
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Below is the amount of rainfall (in cm) every month for the last 3 years in a particular location: 130 172 142 150 144 117 165 182 104 120 190 99 170 205 110 80 196 127 120 175
integral e^(-t)*e^(tz) t between 0 and infinity for Re(z)<1
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It's a problem set, they are attached. it's related to Sider's book which is "Logic to philosophy" I attached the book too. I need it on feb22 but feb23 still work
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Caterer determines that 37% of people who sampled the food thought it was delicious. A random sample of 144 out of population of 5000. The 144 are asked to sample the food. If P-hat is the proportion saying that the food is delicious, what is the mean of the sampling distribution p-hat?
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