hw1 - UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN Actuarial...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN Actuarial Science Program DEPARTMENT OF MATHEMATICS Math 476 / 567 P r o f . R i c k G o r v e t t Actuarial Risk Theory Fall, 2010 Homework Assignment # 1 (max. points = 10) Due at the beginning of class on Thursday, September 2, 2010 You are encouraged to work on these problems in groups of no more than 3 or 4. However, each student must hand in her/his own answer sheet. Please show your work – enough to show that you understand how to do the problem – and circle your final answer. Full credit can only be given if the answer and approach are appropriate. Please provide answers to two decimal places. Note: When calculating a percentage, please provide answers either as a proportion to four decimal places (e.g., 0.xxxx), or as a percentage to two decimal places (e.g., xx.xx%). (1) I enter into a forward agreement with you, to sell my car to you for $4,000 on December 31, 2010. On that date, my car is worth $3,725. What is your net profit or loss on December 31, 2010 from this agreement? (2)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

hw1 - UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN Actuarial...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online