Explain lognormal stochastic differential equation
Explain lognormal stochastic differential equation for evolution of an asset.
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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.
Explain the work and model proposed by Richardson.
An office of state license bureau has two types of arrivals. Individuals interested in purchasing new plates are characterized to have inter-arrival times distributed as EXPO(6.8) and service times as TRIA(808, 13.7, 15.2); all times are in minutes. Individuals who want to renew or apply for a new d
Let (G; o) be a group. Then the identity of the group is unique and each element of the group has a unique inverse.In this proof, we will argue completely formally, including all the parentheses and all the occurrences of the group operation o. As we proce
Select a dataset of your interest (preferably related to your company/job), containing one variable and atleast 100 data points. [Example: Annual profit figures of 100 companies for the last financial year]. Once you select the data, you should compute 4-5 summary sta
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
XYZ Company collects 20% of a month's sales in the month of sale, 70% in the month following sale, and 5% in the second month following sale. The remainder is not collectible. Budgeted sales for the subsequent four months are:
Where would we be without stochastic or Ito^ calculus?
The Pharmatec Group, a supplier of pharmaceutical equipment, systems and services, has its head office in London and primary production facilities in the US. The company also has a successful subsidiary in South Africa, which was established in 1990. Pharmatec South A
integral e^(-t)*e^(tz) t between 0 and infinity for Re(z)<1
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