Question

Taylor series expansion (finicial math) If f1 = (S − 1)^2 and f2 = (e^(S−1) +...

Taylor series expansion (finicial math)

If f1 = (S − 1)^2 and f2 = (e^(S−1) + e^(1−S) − 2) and

df1= 2us(s-1)dt + 2σs(s-1)dw

df2 = [us(s-1) + ((s-1)^3)/3+....]dt + -s [2(s-1)+((s-1)^3)/3+....] dw

A) Compute Taylor series expansions of df1 and of df2 about S = 1 to O ( (S − 1)^2 , and compare the results of the two expansions.

Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A “straddle” option is a portfolio of a long call option and a long put option...
A “straddle” option is a portfolio of a long call option and a long put option in which both options have the same exercise price and are written on the same underlying asset. For an exercise price of 1 and an asset price of S, the maturity value of a straddle is (very) roughly like (S − 1)2 or like e^(S−1) + e^(1−S) − 2. Using e^x = 1 + x + x^2/2! + x^3/3! + · · · +...
The hyperbolic cosine function, cosh x = (1/2) (e^x + e^-x). Find the Taylor series representation...
The hyperbolic cosine function, cosh x = (1/2) (e^x + e^-x). Find the Taylor series representation for cosh x centered at x=0 by using the well known Taylor series expansion of e^x. What is the radius of convergence of the Taylor Expansion?
The Fibonacci series can be defined recursively as: F1 = 0; F2 = 1; and Fn...
The Fibonacci series can be defined recursively as: F1 = 0; F2 = 1; and Fn = Fn-2 + Fn-1. Show inductively that: (F1)2 + (F2)2 + ... + (Fn)2 = (Fn)(Fn+1).
Determine if the set of functions is linearly independent: 1. f1(x)=cos2x, f2(x)=1, f3(x)=cos^2 x 2. f1(x)=e^...
Determine if the set of functions is linearly independent: 1. f1(x)=cos2x, f2(x)=1, f3(x)=cos^2 x 2. f1(x)=e^ x, f2(x)=e^-x, f3(x)=senhx
Find the first four nonzero terms in the Taylor series expansion of the solution of (x...
Find the first four nonzero terms in the Taylor series expansion of the solution of (x 2−2x)y 00+2y = 0, y(1) = −1, y 0 (1) = 3 about x0 = 1.
Use the Taylor Series expansion With the gamma Lorentz factor: γ = 1/(1 – v2/c2)1/2 To...
Use the Taylor Series expansion With the gamma Lorentz factor: γ = 1/(1 – v2/c2)1/2 To derive the formula E = mo c2 E = Total energy = γ mo c2 And that at velocities much smaller that c, you get the classical Newtonian formula for kinetic Energy ½ mv2
1. There are two auto producers in Karmania, F1 and F2. The cars they produce are...
1. There are two auto producers in Karmania, F1 and F2. The cars they produce are essentially identical. The marker inverse demand curve is given by p = a - bQ, where p is the price (in thousands of dollars); Q market output (in thousands of units); and a and b are parameters. It is estimated that a = 25 and b = 0.1. Both F1 and F2 have a marginal cost of 10 thousand dollars per car. Competition in...
What is the Taylor series expansion of: a. Cos x, x0 = 0 b. 1/1-x ,...
What is the Taylor series expansion of: a. Cos x, x0 = 0 b. 1/1-x , x0 = 2
Question #11 Find: The first 3 nonzero terms a Taylor series (at a = 0) of...
Question #11 Find: The first 3 nonzero terms a Taylor series (at a = 0) of f1(x) = sin x, f2(x) = x cos x, f3(x) = x/(2 + 2x^2 ), and f4(x) = x − (x^3/2) − x^5 No explanation is necessary for finding: sin x, cos x, and 1/(1 − x).)
1) find the Taylor series expansion of f(x)=ln(x) center at 2 first then find its associated...
1) find the Taylor series expansion of f(x)=ln(x) center at 2 first then find its associated radius of convergence. 2) Find the radius of convergence and interval of convergence of the series Σ (x^n)/(2n-1) upper infinity lower n=1
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT