Unformatted text preview: ) + P ( ABAA ) + P ( BAAA ) + P ( BBAB ) + P ( BABB ) + P ( ABBB )] + 5[ P ( AABBA ) + P ( ABABA ) + P ( BAABA ) + P ( ABBAA ) + P ( BBAAA ) + P ( BABAA ) + P ( BBAAB ) + P ( BABAB ) + P ( ABBAB ) + P ( BAABB ) + P ( AABBB ) + P ( ABABB )] = 3[ p 3 + (1p ) 3 ] + 4[3 p 3 (1p ) + 3 p (1p ) 3 ] + 5[6 p 3 (1p ) 2 + 6 p 2 (1p ) 3 ] Problem 4.23 a. Lets assume one buys x of the commodity at the start of the week, then in cash one has C = 10002 x . Here we have x ounces of our commodity with 0 x 500. Then at the end of the week our total value is given by V = 10002 x + Y x 1...
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 Fall '07
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 Derivative, Equals sign, TheStart, babb, 19 Part One: Boot Camp

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