This textbook in financial economics provides a rigorous overview of the subject that -- because of an innovative presentation -- is suitable for use with different levels of undergraduate and graduate students. Each chapter presents mathematical models of financial problems at three levels of sophistication: single-period, multi-period, and continuous-time. The single-period and multi-period models require only basic calculus and an introductory probability/statistics course, while an advanced undergraduate course in probability is helpful in understanding the continuous-time models. In this way the material is given complete coverage at different levels; the less advanced student can stop before the more sophisticated mathematics and still be able to grasp the general principles of financial economics.Solution: Value I 60a#39;1a#39;50/365 I 1.0138. 1a#39; 10. You are facing two business opportunities with the following cash flows: a. Investing $10, 000 today, receiving $5, 000 after three months, $4, 500 after six months, and another $4, 500 nine monthsanbsp;...
|Title||:||Solutions Manual for Introduction to the Economics and Mathematics of Financial Markets|
|Author||:||Jaksa Cvitanic, Fernando Zapatero|
|Publisher||:||MIT Press - 2004|