intentional fallacy comes into play, the idea that a work is a separate entity from the creator and their own ideas and so assessments of literary works by readers are more important than those by the author. The original intent is discounted or restricted and instead the audience is at liberty…
The fundamental theorem of Calculus: The fundamental theorem of calculus asserts the interrelated properties of integration and differentiation. It says that a function when differentiated, can be brought back by integrating (anti-derivative) or a function when integrated, can be brought back by differentiation. First theorem: Let f be a function that is integrable on [a,x] for each x in [a,b], then let c be such that a≤c≤b and define a new function A as follows, A(x)=∫_c^x▒f(x)dt, if a≤x≤b.…
by developing the principles of modern physics. On 1661, Newton entered University of Cambridge’s Trinity College in a program similar to a work-study program, as his uncle was pushing him to do so. He spent all his free time reading from the modern philosopher and the result was amazing. On 1665, Newton approached mathematics with a new perspective: infinitesimal calculus. He started developing the theory of calculus that Englishmen John Wallis and Isaac Barrow was working on earlier. Thus,…
What are the factors affecting the prices of options? Explain the assumptions in the Black-Scholes model. In order to understand the factors that affect the prices of options, we need to understand what options are and how they work. Options are derivative assets. According to a California-based company called Optionetics (website: www.optionetics.com), "options are the most versatile trading instruments ever invented". This means, that you aren 't limited to making a profit only when the market…
"I will be happy to give you a retainer of 300 pounds, beginning with the first of January of this year ... I promise shortly to increase this retainer, which I know is very modest, as soon as my affairs are somewhat straightened out ... I am not so unreasonable as to demand in return all of your time, but I will ask you to give me at intervals some hours of your time to work on what I request and also to communicate to me your discoveries, at the same time asking you not to disclose any of them…
Once the model was created the formula was used. Finally, a formula was created that could remove the risk from investments. Many financial derivatives were invented to exploit the BS formula. So after the academics received the Nobel price, LTCM (long term capital management) was created (smart guys going to the market). In 1995 the hedge fund LTCM (long term capital management) was created. The Nobel prize winners had no problem raising the capital and became what could be the team of the…
For the application of Hopf’s bifurcation theory to the system (29) (see [Marsden J.E., M. Mckracken, 1976]), it is required to satisfy the following transversality condition (34) Substituting , and into (31), and calculating the derivatives with respect to , we obtain (35) where Since , we have , and . Hence there is a Hopf bifurcation at . We have the following result: Theorem 13. Suppose holds. Then the system (29) undergoes a Hopf…
Introduction The problems of using derivatives as a risk management tool by financial institutions have been demonstrated in the Banc One case. The major objective of this paper is to provide more insight into the case through analysis of five specific questions in relation to Banc One’s performance between 1993 and 1994. We start by addressing the bank’s problems and potential reasons that lead to such issues. Evidences and facts show that both investors and managers blame the use of interest…
Questions: Answer all questions given What kind of relationship did you see in your D vs T graphs (both hand and computer)? Do these relationships make sense? Explain! In the distance versus time graph for the hand graph, there is an exponential increase the in the distance traveled; as time progresses, the distance the car travels increases a little more, as the slope is not a straight line, but instead slopes upwards, with slopes later in the line being steeper than the slopes before. What…
Results: At the start of the experiment, the initial flow rate was established as 20 ml min-1. This means that there is a steady flow of fluid or blood in your body (in this case, water) at a rate of 20ml min-1. In order to find the final concentration of the Eosin (2,5 mg ml-1) in the “blood” after 60 minutes a calibration curve had to be created by making up seven different solutions of eosin (11,25 μg ml-1) and water to compare it against their absorbance that was calculated in a…