Explain lognormal stochastic differential equation
Explain lognormal stochastic differential equation for evolution of an asset.
Expert
One of the beginning points for typical derivatives theory is the lognormal stochastic differential equation for evolution of a certain asset. Itoˆ’s lemma defines the stochastic differential equation for value of an option on such asset. In mathematical terms, when we have a Wiener process X along with increments dX which are normally distributed along with mean zero and variance dt, in that case the increment of a function F(X) is specified by
dF = (dF/dX) dX + ½ (d2F/dX2) dt
It is a very loose dentition of Itˆ o’s lemma but it will suffice.
Using the mass balance law approach, write down a set of word equations to model the transport of lead concentration. A) Draw a compartmental model to represent the diffusion of lead through the lungs and the bloodstream.
Relationships Between Data - Introduction to Linear Regression Simple Regression Notes If you need guidance in terms of using Excel to run regressions, check pages 1 - 10 of the Excel - Linear Regression Tutorial posted to th
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
The big-O hierarchy: A few basic facts about the big-O behaviour of some familiar functions are very important. Let p(n) be a polynomial in n (of any degree). Then logbn is O(p(n)) and p(n) is O(an<
In a project, employee and boss are working altogether. The employee can be sincere or insincere, and the Boss can either reward or penalize. The employee gets no benefit for being sincere but gets utility for being insincere (30), for getting rewarded (10) and for be
What is limit x tends to 0 log(1+x)/x to the base a?
II. Prove that Set Theory is a Model of a Boolean Algebra The three Boolean operations of Set Theory are the three set operations of union (U), intersection (upside down U), and complement ~. Addition is set
I. Boolean Algebra Define an abstract Boolean Algebra, B, as follows: The three operations are: + ( x + y addition) ( x y multiplic
Prove that Elementary Logic Set is a Model of a Boolean Algebra The three Boolean operations of Logic are the three logical operations of OR ( V ), AN
integral e^(-t)*e^(tz) t between 0 and infinity for Re(z)<1
18,76,764
1923495 Asked
3,689
Active Tutors
1433116
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!