Consider a multiplicative binomial model with N = 3, r = 0, u =
1.2, d = 0.8 and S 0 = 100. At time t = 1 when S 1 = 120 a
(european) call option with maturity at T = 3 and struck at 100 is
quoted at 25. Is that a fair value? If yes explain why? If not
explain why and explicitly define an arbitrage strategy (you have to
give details of the arbitrage strategy)
Consider a multiplicative binomial model with N = 3, r = 0, u =
1.2, d = 0.8 and S 0 = 100. At time t = 1 when S 1 = 120 a
(european) call option with maturity at T = 3 and struck at 100 is
quoted at 25. Is that a fair value? If yes explain why? If not
explain why and explicitly define an arbitrage strategy (you have to
give details of the arbitrage strategy)
6.4.13. If R is the ring of Gaussian integers, show that Q(R) is
isomorphic
to the subfield of C consisting of complex numbers with rational
real and
imaginary parts.
Let G be a bipartite graph and r ∈ Z>0. Prove that if G is
r-regular, then G has a perfect matching.
HINT: Use the Marriage Theorem and the Pigeonhole
Principle. Recall that G is r-regular means every vertex of G has
degree
9. Let G be a bipartite graph and r ∈ Z>0. Prove that if G is
r-regular, then G has a perfect matching.1
10. Let G be a simple graph. Prove that the connection relation
in G is an equivalence relation on V (G)
Let R be a ring and f : M −→ N a morphism of left R-modules. Show that:
c) K := {m ∈ M | f(m) = 0} satisfies the Universal Property of Kernels.
d) N/f(M) satisfies the Universal Property of Cokernels.
Q2. Show that ZQ :a) contains no minimal Z-submodule
Let R be a ring and f : M −→ N a morphism of left R-modules. Show that:
c) K := {m ∈ M | f(m) = 0} satisfies the Universal Property of Kernels.
d) N/f(M) satisfies the Universal Property of Cokernels.
Let R be a ring and n ∈ N. Let S = Mn(R) be the ring of n × n
matrices with entries in R.
a) i) Let T be the subset of S consisting of the n × n diagonal
matrices with entries in R (so that T consists of the matrices in S
whose entries off the leading diagonal are zero). Show that T is a
subring of S. We denote the ring T by Dn(R).
ii). Show...
let
G be a simple graph. show that the relation R on the set of
vertices of G such that URV if and only if there is an edge
associated with (u,v) is a symmetric irreflexive relation on
G