1. Discuss the characteristics of the basic descriptive statistics: sample size, mean and standard deviation
2. Highlight the role of the 'absence of arbitrage' arguments in derivatives pricing. Explain the notion of a replicative portfolio and how traders can use it. Give a short answer without particular derivative pricing examples.
3. To what amount will the following investment accumulate? $2,480, invested today for 13 years at 3 percent, compounded annually.